The Sandbox [SAND] manages to defend $1 level but can it sustain a breakout
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
The Sandbox was steadily transferring decrease and decrease on the worth charts, because the pattern throughout the crypto market has additionally been particularly bearish prior to now two months. There have been no indicators but that SAND might reverse its losses, and long-term buyers would have to be cautious of shopping for an asset in a gradual downtrend.
Bitcoin rose previous the $30.6k mark to succeed in $32.2k prior to now couple of days, however this short-term bullish transfer was rapidly retraced. On decrease timeframes, the $1.51 mark was necessary, however even a transfer above this degree was solely more likely to see a reduction rally and never a pattern reversal.
SAND- 1 Day Chart
Supply: SAND/USDT on TradingView
In February, March, and April, SAND shaped a sequence of decrease highs whereas it held on to the $2.67 help degree, and shaped a descending triangle sample. In late April, the worth fell beneath the sample and fell one other 58% to check the $1.08 help degree.
The $1 space was defended by the bulls, however the previous couple of weeks have seen the worth between the $1.17 and the $1.51 ranges. This meant that volatility has lowered in latest days, however the market construction remained overwhelmingly bearish for SAND.
The bulls would wish to see SAND maintain on to the $1 psychological and technical help within the weeks to return, and would wish to see indicators of accumulation above help. Such a improvement might see SAND rally upwards, towards the $2.5 mark.
Nonetheless, the worth might additionally topple beneath the $1 mark and go sliding decrease.
Rationale
Supply: SAND/USDT on TradingView
The RSI appeared to have flipped the 40 mark from resistance to help and indicated that the bearish momentum had weakened considerably. Nonetheless, because the RSI was under impartial 50 and has been since April, the pattern was pointed downward.
The CMF additionally climbed above the +0.05 mark to point out that purchasing strain was on the rise for SAND, and the inbound capital circulate might assist the struggling bulls. Within the subsequent few days, if the CMF can keep above +0.05 and the RSI manages to climb previous impartial 50, SAND might be gearing up for a transfer previous $1.51.
The Bollinger band width indicator has been falling prior to now two weeks to point out the drop in volatility.
Conclusion
It was not but clear whether or not SAND would transfer above $1.51, or under $1.08. A wait-and-watch strategy could be pertinent, as Bitcoin was additionally considerably undecided about its personal pattern.
For long-term buyers of The Sandbox, the $1.93 and $2.5 ranges usually tend to supply promoting alternatives than shopping for ones within the subsequent week or two, ought to the costs climb that top.
