In this new crypto nugget, let’s take a look at one of the metaverse’s cryptocurrencies, the SAND from the Sandbox ecosystem. After a meteoric rise at the end of 2021 and maximum hype on the various virtual worlds, we can see a reversal of the trend for several months. Today we are going to look at the analysis of the price of the asset, what has happened lately and what could happen in the coming weeks.
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The SAND is on a major weekly support…
First, let’s analyze the weekly scale in order to take a step back on the pair. Since theimportant candle of january 2022, SAND never managed to win back the EMA trio. The latter are relevant and make it possible to identify trend reversals fairly quickly. Of course, watch out for false breaks. For several months, it is the EMA 13 on which the price is being rejected. Currently, the SAND is located on a major support at $0.80/$0.85. In 2021, this level was a resistance. Thus, over the months, it retains its relevance, making it a key level that should not be lost.
If a weekly closing takes place under $0.80, expect another bearish leg on the asset, although it is necessary not to re-enter without confirmation of a breakout on the downside. If this scenario were to occur, what would be the downside objectives? To determine the levels to watch, we have to rely on the evolution of the asset in the past.
- the first level is at $0.581. It was a resistance and then a support before the SAND exploded higher. It is therefore to be monitored.
- the second level is a lower area. Although we can identify a level around $0.40, we can hold this area to $0.295/0.33. The price reacted on this zone several times, which testifies to its relevance.
Is a rebound possible?
As we have seen on a weekly basis, SAND is losing support as it is currently trading below $0.80. Will it pull itself together and free itself from the EMA 13/25/32 under which it has been evolving for several weeks? If so, we can consider a return of the SAND on resistance at 0.95/0.975, it is a confluence of the Value Area Low as well as the High Volume Node. This is the first level on which a price reaction is possible. To hope for a bigger rebound towards a second High Volume Node which is in confluence with the MA 100 at 1.05 dollar, it will have to break free.
In the event that the SAND manages to free itself from this set of resistance, the doors would be open for a return to the resistance represented in red on which the asset has been rejected on numerous occasions! However, there is a real difficulty in reading the market. Price compression is very important for the majority of assets. The market is probably awaiting data on US inflation over one year for the month of September. This will be like a watchword, it will give the momentum that the markets will be able to take in the coming days.
Here we are at the end of this analysis, you are now prepared for different scenarios on the SAND. In the current context, it is very important not to lock oneself into a single bias, although this may be rather bearish in view of recent macroeconomic data. Be ready for this weekend which will probably be rich in emotion, it will be an opportunity to trap overly aggressive buyers and sellers who want to fill their pockets too quickly.
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