Metaverse Tokens Skyrocketed. Is There a Correlation With the Crash of Altcoins?
Despite the technical chart showing massive bear attacks on Metacoins during the latest correction period, the fundamental advancement of the Metaverse ecosystem has considerably increased.
This is as more well-known companies and industry titans, such as Meta, Apple, and now Disney, have entered the metaverse. Furthermore, the value of Bitcoin reclaiming the $40000 mark has boosted investor confidence, eventually propelling altcoins higher.
It has undoubtedly been difficult for cryptocurrency investors to evaluate the situation. Numerous high-flying tokens with significant growth motivators performed well in 2021. On the other hand, some metaverse cryptocurrencies have had a rocky start up until 2022. These metaverse tokens have now skyrocketed, but does it correlate with the crash of alternative coins? Let’s look at what could propel three of the top metaverse cryptocurrencies higher this year.
Getting to Know What Metaverse Is
The metaverse refers to the advancement of technology and the creation of 3D virtual surroundings. Individuals in the metaverse use its corresponding token, the metaverse tokens, as their virtual currency. Users can create, purchase, and sell tokenised finances as well as goods, and several promising tokens are expected to rise in value in the coming months.
While some metaverse tokens can only be spent in the metaverse ecosystem, others are available on exchanges such as WazirX, Coinbase, Binance, and platforms like Bitcoin Profit. Interestingly, professionals are extremely enthusiastic about metaverse tokens. Haim Israel, a strategist at Bank of America, assured users that metaverse tokens are “a massive, massive opportunity” .
Metaverse Coins Soaring Higher
Several metaverse-related cryptos have recently exploded in popularity. This is a subject matter that is receiving a lot of attention right now. As it turns out, investors appear to be very interested in the disruption potential that numerous blockchain networks offer in this regard.
With that in mind, a massive flow of green on the crypto charts indicates that investors appear to have taken a risk-on approach to the growth of metaverse tokens today, with several hyper-growth industries trading higher. With that in mind, let’s take a look at the top three soaring metaverse tokens.
AXS Rises With Its Double Bottom Breakout
The AXS token price begins a correction phase within the same falling channel pattern observable on the daily chart after identifying supply near the $160 threshold. However, the decline breaks several levels of support prior to actually reaching demand near the $50 support zone.
Furthermore, the AXS token price movement forms a double bottom pattern near the $50 support zone, which may soon challenge the falling channel’s resistance regression line. Furthermore, the 20-day Exponential Moving Average acts as dynamic resistance to ongoing bullish efforts.
Technically, the RSI indicator indicates a spike in underlying bullishness as the slope breaks and exits the oversold boundary. The slope breaks above the 14-day simple moving average, indicating the presence of a bullish divergence in the double bottom pattern.
MANA Pursuing To Reclaim Its $3 Mark
The MANA price fell to the 0.786 Fibonacci retracement level, which is $1.71, under the inﬂuences of the downward trendline, revealing a 70% loss from the All-Time High resistance of $5.9. However, the coin price recovered by 77% in the last two weeks, breaking through the dynamic resistance trendline.
Furthermore, the bulls have broken through a critical mutual resistance level of $2.9 and the 50-day SMA, implying thatbuyers are ready to launch a rally for its recovery. However, if the coin closes a daily candle above this resistance, buyers will push the value of this altcoin to $3.43 or $3.9. Contrary to popular belief, if buyers fail to keep the coin above the $3 mark, the alt price will fall to $2.4, followed by $2.
GALA With A Tease In Breaking Out From Its Consolidation Phase
GALA buyers have been trying to defend the $0.17 mark with vitality for weeks. The extreme selling pressure at $0.23, on the other hand, resulted in the formation of a narrow range. As the value of the asset breaks out of any of its levels, it creates a powerful directional move.
Recently, the token has formed a massive bullish candle that has pierced the combined resistance of $0.23 and the downwards trendline, leading to the possibility of a bullish turnaround. The GALA price increased by 42% from the $0.17 support level; however, crypto traders should hang tight for a daily candle closing above this resistance level to confirm this breakout.
If buyers maintain their position above $0.23, the alt will rise to $0.288 as immediate resistance, followed by $0.36.
The selling of digital real estate and in-game NFTs keep going to soar. And despite the market’s high volatility rate, there is a variety of bullish debates about why these tokens are worthwhile to consider. Regardless, these leading metaverse crypto assets are ones to consider right now for those who are truly bullish on both developer and user growth in this area.
However, there is a bearish case to be made for holding either one of these tokens. Based on speculation, interest has skyrocketed the market values of these cryptos in a very short period of time. As portfolio de-risking persists, the tokens that have risen the most are likely to fall the most in a risk-off environment.
For the time being, the value of these tokens will be determined by how risk-averse investors behave in the short term.
For those looking for development, the metaverse offers a diverse range of investment opportunities as the crypto community is currently one of the top destinations for investors seeking outsized returns.
There is certainly a compelling case to be made for these tokens. After all, genuine functionality is being created for users as the majority of them don’t care whether or not an online game is built on the blockchain. If the interaction and overall experience are just as good, and there’s some profit to be gained from playing the game, it’s easy to see how the rapid expansion for these various tokens could be massive. Of course, like all digital currency assets, these metaverse-inspired tokens are not without risk.