Monday’s TA: SAND, the crypto that will hit the bottom of the sandbox?

The mood in the market has been gloomy for several weeks. Whether it is a cryptocurrency that is developing in decentralized finance, in the gaming industry, NFT or the metaverse, must necessarily face a decline. In this brand new technical analysis, we take a look at one of the best known of the metaverse: Sandbox SAND. What do we have to say about the current pricing structure? What are the scenarios to consider for SAND? We will try to answer as best we can by going to TradingView right away.

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SAND’s previous weekly resistance should hold up.

Price of SAND against the dollar on a weekly scale (1W)

After an all time high $ 8.48, SAND has experienced an interminable decline. After a rebound a 2.55 dollars to make it a support for a few weeks, being the most powerful sales force, this level has been broken down. This signal led to an acceleration of the bearish trend with descending lows and peaks. Now, the SAND is in its former resistance zone at $ 0.8 / $ 0.9. Having prevented the price from hitting higher highs for part of 2021, this zone was never tested again following the bullish breakout. But now we are. Will resistance act as support with a buy reaction? Or will sellers continue to take over in the coming weeks?

It is clear that being the bearish trend on a weekly basis, we must favor bearish targets. In case of bullish targets, these will not be very important. These will be corrections to the underlying trend. But then, what will happen if the SAND continues its merry way to the previous lower price levels? We will have to keep in mind different price zones which are as follows.

  • The $ 0.58a technical level that operated as support and resistance between April and September 2021
  • The $ 0.35a weekly pivot zone that the price could likely react to if the $ 0.58 let go without difficulty.
  • The area of $ 0.16 / 0.18an area where the price froze in January 2021 and then turned into a rebound area in June last summer.

Of course, these are theoretical objectives and in no case are we certain of a return to all levels.

A bearish trend that is confirmed on a daily scale

Price of the SAND cryptocurrency against the dollar on a daily basis
SAND price against the dollar on a daily scale (1D)

What we can see on a daily basis is the strength of the bearish trend with lows and descending peaks following one another fairly quickly. This demonstrates the sales force of the market for several months. After losing the $ 2.55, as explained at the beginning of the analysis, the SAND was part of a period of lateralization. between its cavity $ 0.96 and its top a 1.53 dollar, SAND fluctuated precisely between the upper limit and $ 1.24. After the loss of the blue pivot zone, SAND just broke the lower bound to register a new descending depression. This allows us to determine a continuity of the bearish trend.

The next bearish targets of the SAND are not numerous, it is relevant to rely on the targets that were mentioned in the first part of the analysis on a weekly level. As for the rebound, would that be possible? For the moment, the bullish targets must be very restrictive given the macroeconomic context as well as the situation of the financial markets. At best, we can predict a return to the upper limit a $ 1.53. Still, it seems too optimistic.

How come ? A return to this level would initiate significant buying force with the first sign of a turnaround. Therefore, it is preferable to revise the bullish target downwards with the $ 1.24 which corresponds to the pivot zone of the recent lateralization period. Although optimistic even with a rebound that would be around 50%, you can consider, if desired, even lower goals. For example, you can aim for a pullback to the lower bound before triggering a new bearish leg.

That’s it, your AT Monday is already over! You now have the key levels of the SAND asset in your hands. Remember we are in a weekly and daily downtrend. Thereby, bearish targets are preferred, although bullish corrections may occur on some technical levels. For now, let’s look at the price reaction in the $ 0.8 / 0.9 area to determine the most plausible price targets as soon as possible.

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