The Metaverse To Trillions? Virtual Worlds Turn Bullish

Key Takeaways

• Decentraland and The Sandbox jumped in the last 24 hours.
• The rise came after Goldman Sachs published a report arguing that the Metaverse was an $8 trillion opportunity.
• MANA and SAND looked like they could continue to benefit and recover all losses incurred in the crypto market downturn.

Decentraland and The Sandbox were soaring as interest in the Metaverse continued to grow. As the crypto market rebounded from its latest dip, MANA and SAND both looked poised for further gains.

Decentraland, The Sandbox Post Rally

Decentraland and The Sandbox were experiencing a significant bullish impulse.

MANA was up 7.6% yesterday, while SAND rose 5.7%. The two assets were enjoying an uptick as the market looked to recover from its recent downturn.

Despite volatility in the market, both Decentraland and The Sandbox have benefited from growing attention on the Metaverse since Facebook (NASDAQ:FB) announced its rebrand to Meta. While many tokens like MANA and SAND have soared since the announcement, institutional players like Grayscale have expressed their belief in the future of the Metaverse.

More recently, Goldman Sachs published a report affirming its view that the Metaverse could evolve into a multi-trillion-dollar market.

Eric Sheridan, a Managing Director at Goldman Sachs, noted that he thought the virtual economy would continue to grow alongside the digital economy, which currently represented roughly 25% of the global economy. He explained:

“We came up with the number for various outcomes of anywhere from $2 trillion to $12 trillion, with $8 trillion at the midpoint of all potential outcomes [for the Metaverse].”

Sheridan’s remarks appeared to have been welcomed by investors as the leading Metaverse tokens in the cryptocurrency market were rising fast. Decentraland, The Sandbox, Enjin Coin, and Axie Infinity have all jumped over the last 24 hours. Now, Decentraland and The Sandbox looked set to continue their upward moves.

The Tom DeMark (TD) Sequential indicator presented a buy signal on both MANA and SAND’s three-day charts. The bullish formation developed as a red nine candlestick, which was indicative of a one to four three-day candlesticks upswing or the beginning of a new upward countdown.

Source: TradingView

Still, transaction history showed that Decentraland and The Sandbox faced significant resistance ahead.

Nearly 7,000 addresses were holding approximately 36 million MANA at an average price of $2.60. This created a significant supply barrier, which could have the ability to absorb some upward pressure. Decentraland would have to break through this barrier to approach $3. If it fails to do so, it may experience a pullback to $2.

Source: IntoTheBlock

Likewise, Sandbox would need to print a three-day candlestick close above the $3.50 resistance level to validate the bullish outlook. Slicing through this hurdle could generate enough momentum to push prices to $4. However, if it struggles to break the $3.50 wall, SAND could retrace to $3.

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