The Sandbox (SAND) looked to be starting an uptrend after the perfect technical bounce off the monthly S1 support level at $4.19. Instead, the rally was short-lived and underwent a fade yesterday with investors reluctant to pick price up off the floor of the $4.72 historical level. If global markets don’t rally today, expect a dip to the downside with bulls getting stopped out and a nosedive back towards $4.19.
This week, the Sandbox was on the same page as most other cryptocurrencies, having found support and delivered promising signs of a new rally that could set the tone for 2022. But instead, markets and participants are having issues reading between the lines on central bank tightening from the FED – and what that means for equity investments and portfolio rebalancing. With that, cryptocurrencies took a step back yesterday, and SAND failed to pare back yesterday’s incurred losses.
SAND bulls look to have fled the scene as bears push price-action back down against the $4.72 level that holds some historical importance in SAND’s brief existence. A break below would trigger another sharp sell-off as stops run, and sell volume gets enlarged. A test or break below the monthly S1 at $4.19 could then follow..
SAND/USD daily chart
Although European equities are red, US futures are mildly green, so sentiment could quickly shift once the US cash trading session starts. This will see a bounce off the historical level and a swing to the upside, touching the 55-day Simple Moving Average (SMA) at $5.60 or the monthly pivot just above. That would preposition SAND bulls for an attack on the red descending trend line in the week to come.