The recent news that US President Biden will be signing an executive order to create a ‘Digital dollar‘ has brought a sudden pump in the crypto market. Following the overall sentiment, the Sandbox(SAND) price bounced back from the $2.74 support, indicating a 4.43% intraday gain. Can traders maintain this bullish momentum to breach the long coming descending trendline?
Key points:
- The 50-DMA provides strong resistance to SAND price
- The daily-RSI shows a positive divergence concerning the SAND price action
- The intraday trading volume in SAND price is $266.5 Million, indicating a 19.44% gain.
Source- Tradingview
The Sandbox(SAND) traders aggressively sell in downtrend rallies using a highly influential descending trendline. The recent reversal from the dynamic resistance plunged the altcoin to $2.73 monthly support.
Last week, the buyers tried to bounce back from this support($2.73) and breached the immediate resistance of $3.42. However, the altcoin couldn’t overcome this overhead resistance and plummeted back to bottom support.
Today the altcoin bounced back from the $2.73 support, suggesting this level as a high accumulation zone. The sustained buying momentum would drive the coin price by 15%, challenging the shared resistance of $3.42 and descending trendline.
A breakout and sustainability above this overhead resistance would indicate the traders’ sentiment has shifted from selling the rallies to buying the dip, predicting a potential recovery to $4, following the $4.4.
Conversely, if sellers sink the altcoin below the $2.73 support, the SAND holders will face a 24% downside risk.
Technical analysis
The daily-Relative Strength Index shows an evident positive divergence concerning the last three swing lows, indicating a possible bullish reversal from the $2.75 mark.
However, the declining 50 and 100 DMA suggest the bear has the upper hand. Moreover, the buyers have recently lost the 200 DMA support, offering an extra edge to short-sellers.
- Resistance levels- $3.42, $4
- Support levels- $2.75 and $2
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.
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Source: https://coingape.com/markets/sandbox-price-prediction-can-rising-rsi-boost-further-recovery-in-sand-price/