SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?

Brian Bollinger
January 11, 2022
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Entering the year 2022, the market sellers took an upper hand over the SAND price. The pair was rejected from the $7 mark and lost 34% of its value by dropping to the $4.48 mark. The price has recently plunged below the 0.5 FIB level, indicating the token could extend the correction phase.

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Key technical points:

  • The SAND price RSI chart shows a bullish divergence in the 4-hour time frame chart
  • The daily-MACD indicator’s lines slip below the neutral zone
  • The 24-hour trading volume in the Sandbox token is $3.1 billion, indicating a 0.83% loss.

Source-Tradingview

Previously when we covered an article on Sandbox token, this pair was riding its 2021 Christmas rally. However, the price couldn’t pass the $7 mark, and by experiencing a strong supply, the token was immediately rejected with an evening star pattern.

The recent bloodbath in the crypto market added to the ongoing selling  and dropped the price even below the 0.5 Fibonacci retracement level.

The correction phase is the SAND price has engulfed the 20 and 50 DMA lines. However, the overall trend for this token is still bullish as it is trading above the 100 and 200 DMA.

The Moving average convergence divergence indicator projects the MACD and signal lines have just dropped below the neutral zone(0.00), indicating the increasing bearish momentum.

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Sand Price Resonating In A Falling Channel Pattern

Source- Tradingview

The Sandbox token is currently in a retest phase. If the price manages to sustain below this level, the coin could drop to its lower support level of $3.7. Moreover, the chart also shows a falling parallel channel pattern, leading this downfall.

Until the token is resonating inside this pattern, the price could extend the correction phase. However, this pattern is quite known for a bullish rally when the price breaks out from its overhead resistance trendline.

The Relative Strength Index(40) in the 4-hour time frame chart is steadily recovering from the oversold region. Moreover, a bullish divergence in RSI supports a bullish breakout from the falling channel.

Resistance levels: $4.61, $5.65

Support levels: $4.2, $3.5

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.