Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Bitcoin Dominance took an enormous leap earlier this month because it soared from 41.5% on 10 May to the touch 45.47% on 19 May. This surge meant that Bitcoin’s share of the whole market capitalization of the crypto-market rose by an enormous quantity, although the worth per Bitcoin remained across the similar – Around $29k. Therefore, altcoins are shedding worth a lot quicker than Bitcoin, and long-term traders could be clever to stay cautious of the motion of this metric.
For The Sandbox, a shopping for alternative for long-term horizon traders is just not but current. The pattern, actually, remained overwhelmingly bearish at press time.
SAND- 12 Hour Chart
Source: SAND/USDT on TradingView
The $4.4, $3.6, and $2.65-zones have been essential assist ranges over the previous three months. The worth has damaged beneath every of them, and at press time, SAND was buying and selling at $1.28. These ranges had acted as sturdy resistance when SAND pushed north in October and November final 12 months.
The subsequent stronghold of the patrons lay across the $1-area, with $1.08 marked as a assist degree on the charts. However, the collection of decrease highs and decrease lows over the previous few months recommended that patrons run a excessive danger of enormous losses in the event that they try to DCA into a gentle downtrend.
Instead, long-term traders may wish to anticipate indicators of power from patrons earlier than allocating some capital in the direction of the crypto-asset.
Rationale
Source: SAND/USDT on TradingView
The worth shaped a hidden bearish divergence with the momentum indicator, RSI. The worth shaped decrease highs (white) whereas the RSI made greater highs. This bearish divergence recommended a continuation of the downtrend, and due to this fact, the worth might transfer towards the $1-mark within the days or perhaps weeks to come back.
The RSI has been beneath the impartial 50 line because the begin of April, which highlighted the bearish pattern of SAND. The Stochastic RSI additionally shaped a bearish crossover, including a bit extra confluence to the bearish bias.
The OBV did choose up barely over the previous week because it shaped greater lows, however the shopping for quantity is dwarfed by the promoting quantity of the previous few weeks. Alongside the identical, the CMF has additionally been beneath the -0.05 mark over the previous six weeks. This meant that important capital circulation was directed out of the markets, highlighting promoting stress.
Conclusion
The indicators aligned to indicate vendor power in current weeks, and the prospects don’t look nice for a bullish reversal. Buyers would wish to anticipate market sentiment to shift, whereas short-sellers could be taken with SAND’s response on the $1.19 and $1.53-levels, in addition to a breakdown underneath the psychological $1-support.
