Bitcoin closed the weekly candle below the $39k support, but remains above the critical $37k level. In what has been a red week, BTC’s fall to the $38-39k zone comes on the back of the bearish double-top pattern it had formed during February. Extreme levels of fear have manifested in the market, and altcoins have reacted accordingly, with high and low market capitalization coins falling in price. Gaming and Metaverse tokens, in particular, fell sharply over the past week.
Gala Games (GALA) fell considerably over the past week, dropping from almost $0.36 to just under $0.25 in a five-day period, failing to maintain 50 Daily EMA as a support level. It had formed a local top of about $0.40 in on February 9, 2022, after bottoming at the $0.18 level in the late January-early February period. In the case of a bullish reversal, the token would need to confirm the $0.25 level as support, to guarantee a higher low on the daily time frame.
Similarly, Decentraland (MANA) printed five red candles on the daily chart, falling from the $3.40 level to $2.63, also dropping under the 50 Daily EMA in the process. Reclaiming the $2.82 level as support is critical towards fulfilling the scenario of a bullish uptrend in prices. The token had recently formed a local top at $3.56 on February 9, 2022, which represented the peak of its ascendancy from the $1.72 bottom level it had reached on January 22, 2022.
The Sandbox (SAND) also fell sharply over the past week, descending from $4.46 per token to a low of $3.18, reflecting a 29% decrease in price. Currently trading in the $3.25-3.45 zone, it currently remains close to the psychological level at $3, which it held as support in late January 2022, before forming a local top at $4.86 per token on February 9, 2022. Of the three tokens, SAND has shown the most weakness, and requires the greatest influx of liquidity in the upcoming period to reverse the trend into a bullish market structure.