The mood of the market has been gloomy for several weeks. Whether it is a cryptocurrency that is developing in decentralized finance, the gaming sector, NFTs or the metaverse, it must necessarily face a decline. In this brand new technical analysis, let’s take a look at one of the best known of the metaverse: SAND from Sandbox. What do we have to say about the current price structure? What are the scenarios to consider for SAND? We will try to answer them as best we can by heading to TradingView right now.
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SAND’s former weekly resistance should hold.
After an all time high at $8.48, SAND registered an interminable decline. After a rebound at 2.55 dollars to make it a support for a few weeks, the selling force being more powerful, this level was broken down. This signal led to an acceleration of the downtrend with descending troughs and peaks. Now, the SAND is on its former resistance zone at 0.8/0.9 dollar. Having prevented the price from posting higher highs for part of 2021, this zone was never retested following the bullish breakout. But now we are there. Will the resistance act as support with a buying reaction? Or will sellers continue to take over in the coming weeks?
It is clear that the trend being bearish on a weekly basis, we must favor bearish objectives. In case of bullish objectives, 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 towards former lower price levels? We will have to have in mind several 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 on which the price could probably react if the $0.58 let go without difficulty.
- The area of $0.16/0.18an area where the price blocked in January 2021 and then turned into a rebound area in June of last summer.
Of course, these are theoretical objectives and in no case we have the certainty of a return on all levels.
A bearish trend that is confirmed on a daily scale
What we can see on a daily basis is the strength of the downtrend with rising lows and highs following each other fairly quickly. This demonstrates the selling strength of the market for several months. After losing the $2.55, which was explained at the beginning of the analysis, the SAND was part of a period of lateralization. between its hollow $0.96 and its top at 1.53 dollar, SAND oscillated precisely between the upper limit and 1.24 dollars. After the loss of the pivot zone represented in blue, SAND has just broken the lower boundary to register a new downward trough. This allows us to determine a continuity of the downtrend.
The next bearish objectives of the SAND are not numerous, it is relevant to rely on the objectives that were mentioned in the first part of the analysis at the weekly level. As for a rebound, would that be possible? For the moment, the bullish objectives must be very restrictive given the macroeconomic context as well as the situation of the financial markets. In the best case, we can envisage a return to the upper limit at $1.53. And yet, that seems too optimistic.
Why ? A return to this level would initiate significant buying force with the first sign of a trend reversal. Thus, it is preferable to revise the bullish objective downwards by having in the viewfinder the $1.24 which corresponds to the pivot zone of the recent period of lateralization. Although also optimistic with a rebound that would be around 50%, you can consider, if you wish, even lower objectives. For example, you can aim for a pullback on the lower boundary before triggering a new bearish leg.
There you go, your Monday AT is already over! Now you have the key levels on the SAND asset in your hands. Remember that we are in a weekly and daily downtrend. Thereby, bearish objectives are preferred, although bullish corrections may occur on some technical levels. For now, let’s watch the reaction of the price on the $0.8/0.9 area to determine the most plausible price targets as soon as possible.
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