Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
The incapacity of Bitcoin to carry on to the $44k space induced robust promoting stress throughout the crypto market, and The Sandbox was one of many cash affected. As Bitcoin plunged under the $44.4k degree, SAND additionally slid beneath the $3.4 degree. The $3 degree was additionally breached by the bears. Does this imply that the bullishness of March was undone? Conversely, can The Sandbox submit beneficial properties and push towards the $4.4 space within the weeks to come back on the again of sustained demand?
SAND- 1 Day Chart
On the day by day timeframe, the market construction for SAND nonetheless had a bullish bias. Don’t roll your eyes but. The downtrend (purple) and its latest decrease excessive at $3.41 has been damaged by the next excessive two weeks in the past. The swing low at $2.62 in February has additionally been adopted by greater lows in March.
Until the $2.62 degree is damaged, the charts would have a bullish tinge. In the following few days, the $2.8 degree might have some significance on the decrease timeframes. Since the $3 degree has been ceded to bears, decrease timeframes had a bearish outlook.
Therefore, long-term traders wish to see the $2.6-$2.8 space be defended by the bulls within the days to come back. If such a situation does unfold, and SAND can haul itself again above $3, the latest drop may be thought of a liquidity seize.
The RSI hovered simply above the 40 mark at press time, and the Stochastic RSI was additionally in oversold territory and on the verge of forming a bullish crossover for the present buying and selling session. It have to be remembered that momentum indicators lag behind the worth.
The OBV has been in an uptrend since March, and alongside the upper lows, introduced credibility to a bullish bias.
In the occasion that Bitcoin sees one other wave of promoting, SAND can drop towards the $2.62 mark. A shopping for alternative was seemingly not in sight but for a risk-averse purchaser, and a transfer previous $3 and $3.4 could be mandatory for long-term traders to count on a transfer towards $4.4.
On decrease timeframes, it could be encouraging if the bulls can push SAND again above the $3 mark. The $3.12-$3.15 was an space of resistance on decrease timeframes.