Published 6 hours ago
The SAND price has seen a short consolidation between the $1 and $0.9 barrier for more than a week. Furthermore, the coin price is 4.32% up today and rebounded from the mentioned support with a morning star candle. Thus, the bullish engulfing candle backed by increasing volume indicates a genuine reversal which may attempt the $1 breakout.
Key points from SAND analysis:
- The recent correction plugged the SAND price to 0.786 Fibonacci retracement level
- The daily-RSI slope escaped from entering the oversold region
- The intraday trading volume in SAND price is $409.6 Million, indicating a 10% loss.
Source- Tradingview
The SAND/USDT pair witnessed a constant downfall in the second half of August. The coin price plunged to the $0.91 mark and registered a 36% drop. This bear cycle breached multiple support levels and evaporated nearly 76% of gains obtained during the June-July recovery.
Furthermore, the SAND price mostly recently pierced the psychological support of $1. This support breakdown should have opened the path for a 21% drop to hit the $0.776 support. However, the falling price halted at the $0.91 mark, preventing further loss for coin holders.
Also read: Making Easy Money With Multi-Accounting On Sandbox
For the past one and a half weeks, the SAND price has been wavering below the new support and the $1 mark, creating a narrow range rally. However, this consolidation is a retest phase to the $1 breakdown, and if the price shows sustainability below its, the downfall should extend further.
Thus, a breakdown below $0.9 would provide the necessary confirmation for the price to revisit $0.775.
On a contrary note, if prices jump above the $1 mark, the resulting fake out scenario will trap the aggressive short sellers. Thus, the forced liquidation from these traders will bring more buying orders to push the SAND price to the $1.08 mark.
Technical indicator
Bollinger band indicator: the indicator displaying a large spread indicates a direction rally and strong convention from one party(in our case, sellers). Moreover, the price jump could hit the combined resistance of the midline and the $1 mark, indicating a strong supply zone for possible price reversal.
Relative Strength Index: the daily-RSI slope rebound from the oversold region neckline indicates the coin price is to stabilize for the further price drop.
- Resistance levels- $1 and $1.08
- Support levels- $0.9 and $0.75
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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