Under the influence of a descending trendline, the Ssandbox (SAND) sellers revert the recovery rally from the $4.82 mark. In less than two weeks, the altcoin lost 25% and plunged below the $4 psychological level. Moreover, the sustained selling threatens the bulls could lose the $3.5 support.
Key technical points:
- The descending trendline breakout is must for genuinely bullish recovery.
- The daily-RSI slope re-enter the negative territory
- The intraday trading volume in SAND price is $987.5 Million, indicating a 4.18% loss.
Source- Tradingview
Since the correction phase began in late November of 2021, the SAND price has respected a descending trendline, pulling the altcoin to its lower level. The recent recovery soared the SAND price by 80% and brought it back to the resistance trendline($4.84).
However, the sellers mounted stiff resistance at this level and triggered a fallout from the $4.45 mark. The bears benefited from this bull trap and reverted the altcoin by 24.5%($3.67).
The flattish crucial EMAs(20, 50, 100, and 200) signal a sideways movement in price action. However, the bearish crossover of the 20 and 100 EMA could boast the ongoing sell-off in the crypto market.
The daily-Relative Strength Index(41) slope slips below the 14-SMA and neutral, indicating aggressive selling from traders.
SAND Price Approaching A Combine Support Of $3.5 And 200-day EMA
Source-Tradingview
The recent retracement from the overhead resistance trendline suggests the sellers maintain a sell-the-rallies sentiment. The altcoin gradually falling will soon retest the shared support of $3.5 and 200-day EMA. If sellers pulled the price lower this support, they can expect a target to the current lower low support of $2.75
Alternatively, if the SAND price rebounds off $3.5 support, the buyers will drive the price to the descending trendline with an expectation of a bullish breakout.
- Resistance levels- $4.45, $5.2
- Support levels are $3.5 and $2.75
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/sandbox-price-analysis-sand-holders-face-a-20-downside-risk-if-they-lose-this-key-support/