• The prices of Apecoin [APE] and Decentraland [MANA] have appreciated over the last 24 hours due to a surge in Bitcoin’s price.
• A price chart assessment of both tokens indicated that the rally may be short-lived.
• Both APE and MANA are close to being oversold, with their key momentum indicators suggesting that buying pressure has dwindled.
Positive Correlation With Bitcoin
Sharing a statistically significant positive correlation with Bitcoin [BTC], the rally in the king coin’s price due to Federal regulators‘ decision to restore all deposits at Silicon Valley Bank (SVB) has resulted in price gains for Metaverse tokens like Apecoin [APE] and Decentraland [MANA]. In fact, according to CoinMarketCap, APE logged a double-digit rally of 14% in the last 24 hours. This, while MANA recorded a 9% hike over the same period.
Price Chart Assessment
While many traders have taken advantage of the price rallies to cash in profit, a price chart assessment of both tokens hinted at a price drawdown. Especially if buyers fail to sustain their momentum as the week progresses.
APE Price Analysis
At press time, APE was trading at $4.41. While its value surged over the last 24 hours, mirroring the market’s generally bullish trend, its set-up on the daily chart revealed that sellers have remained effectively in control. A look at Directional Movement Index (DMI) seemed to confirm this. At press time, Negative Directional Indicator line (red) was positioned above Positive Directional Indicator line (green). This meant that selling pressure overwhelmed buying momentum and Average Directional Movement Index line (yellow) pegged an uptrend which suggested strong selling pressure challenging buyers reversing it in interim with greater distribution underway key momentum indicators showed token is edging closer towards being oversold as RSI & MFI were spotted at 41.60 & 31.85 respectively indicating waning buying pressure once hype surrounding SVB customer deposits protection dies down APE’s price expected to fall further especially if new demand fails enter market
MANA Price Analysis
At press time MANA was significantly oversold touching lower band of Bollinger Bands indicating sellers increasingly let go holdings while this could mean correction underway positions RSI MFI didn’t confirm same showing buying pressure weakened further suggesting potential downside movement had started however bulls need take back reigns soon or bearish run will continue gaining strength
Conclusion
With both APE and MANA close to being oversold and their key momentum indicators suggesting waning buying pressure, it is likely that once the hype surrounding SVB customer deposits protection dies down these tokens‘ prices will fall further unless new demand enters into the market