Sandbox (SAND) is nearing strong support, what’s next?
Sandbox (SAND) started a strong rebound on December 4th but was unable to break above the next resistance level thereafter.
SAND has fallen since it hit an all-time high of $ 8.48 on November 25 and hit a low of $ 4.12 on December 4.
More importantly, the bounce confirmed the $ 4.55 area of support. This is both horizontal support and 0.618 fib retracement support. Because of the combination of these factors, it is likely that a ricochet will be initiated.
However, the technical indicators continue to decline.
The MACD, formed by the short and long-term moving averages (MA), is in positive territory and is declining. This means that the short-term MA is slowing down compared to the long-term MA.
The RSI has fallen below 50 (red symbol). This is a sign of a downtrend. The indicator’s intersection above the previous line of 50 (green symbol) resulted in a one-sided rally to a new all-time high.
Therefore, the signals of the price movement and the technical indicator do not match in the daily timeframe.
SAND / USDT daily chart | Source: TradingView
Short term movement
Trader @TradingTank tweeted a SAND chart and said that price would have to break the $ 5.60 resistance to resume the uptrend.
The source: Twitter
The main resistance area is at $ 5.60. It coincides with a descending resistance line from the all-time high.
More recently, it turned down the SAND on December 13th, catalyzing the current downward move. Until this level is restored, the trend cannot be considered bullish.
A break of the above $ 4.55 support area may move the price towards the next support at $ 3.95.
SAND / USDT 2-hour chart | Source: TradingView
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