Briefly-
- SAND has overpowered long-term descending resistance.
- It trades within a near-term ascending channel.
- SAND might have ended running flat corrections.
Sandbox (SAND) trades within a corrective (near-term) setup despite overcoming a long-term plunging resistance. The metaverse token is yet to confirm directional bias.
SAND has declined beneath a descending resistance level since hitting the November all-time high at $8.50. The downward movements saw the token exploring the $0.74 low on 18 June 2022. Meanwhile, the price kick-started upside movement and broke the level on 25 June.
The zone had stayed for 213 days at that time. Though we are a month away from that breakout, SAND price still sways near the breakout region. Meanwhile, the token has lost approximately 85% since its ATH.
The immediate horizontal resistance stands at $1.45, whereas the nearest Fibonacci resistance hovers at $3.75.
Near-Term Movement
The daily price chart doesn’t present reliable signals as far as trend direction is concerned. Though Sandbox has regained the horizontal level at $1.10 after moving beneath it, the 24hr Relative Strength Index sways freely below and above 50. That signals neutral trends for the alternative token.
@eliz883, a crypto trader, tweeted SAND’s chart showing a near-term breakout. Nevertheless, the price has recovered considerable declines since the tweet and trades within the ascending parallel channel’s lower portion.
That’s a corrective setup in the price outlook. Furthermore, prices have met rejection at the $1.30 horizontal resistance zone. We can’t consider it a bullish trend until SAND recaptures the channel’s middle.
Wave Count
The price actions may comprise a complete A-B-C flat correction Considering the overlapping movement within the channel. If so, investors can expect an upside action towards $1.75, giving the increase’s portion a 1:1 ratio.
Nevertheless, breakdowns from the mentioned channel would annul this wave count and indicate a bearish trend instead. Also, enthusiasts should watch Bitcoin’s moves as they can affect SAND’s outlook.
The crypto market enjoys the FOMC-driven rally, with Bitcoin hovering beyond $23K. However, bears still linger, highlighting possible retracement upon any weakness. Let us wait to see whether the market will sustain the current trend.
Stay tuned for the latest developments in the crypto space.
Editorial credit: Ira Lichi / shutterstock.com
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