Altcoins

The Sandbox fails to hold on to $4.2 and slides further down below this support

The $4.5 space was recognized as an space of demand for The Sandbox. Nevertheless, the value was rejected at a vital degree and has been dropping steadily down the charts up to now couple of weeks. The momentum was strongly bearish, and a drop towards the $3.29 degree was doubtless. A retest of the $4-$4.5 space is usually a shorting alternative. Bitcoin has additionally descended beneath $40.5k and had its help at $37.3k. Market sentiment continued to be bearish, for SAND as nicely throughout the market.

PP 4 SAND price 1

Supply: SAND/USDT on TradingView

The $4.5 degree was one which the value had examined as resistance in mid-November earlier than it barreled forward to $8.48 highs. Utilizing these highs, and the early December sell-off wick to $4.12, a set of Fibonacci retracement ranges (yellow) have been plotted.

A few weeks in the past, the value had some patrons for a day or two and appeared prefer it might break previous the $5.15 degree and flip it to help. Flipping the 23.6% retracement degree, adopted by consolidation, is one thing that many cash do on greater timeframes that indicators a downtrend’s finish.

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Nevertheless, SAND was strongly rejected at $5.15 and has misplaced practically 27% in worth since then. The following degree of help for SAND lay at $3.29.

Rationale

The every day RSI leaned closely in favor of the bears because the studying stood at 31.7 at press time. Furthermore, on the every day RSI, the 36.9 degree and its neighborhood have seen the RSI bounce. A pointy drop proper previous this degree has, up to now, been adopted by heavy losses. As an illustration, such a drop within the RSI in Might and June was adopted by a close to 30% drop within the subsequent couple of days.

Historical past needn’t repeat but it surely does rhyme.

On the OBV too, a downtrend has been seen up to now couple of months, though the promoting quantity was not as heavy because the one-way site visitors we are saying in November’s bull run for SAND. The 21-period transferring common had crossed bearishly beneath the 55-period transferring common (orange and inexperienced respectively).

Conclusion

In abstract, the momentum was strongly in favor of the bears. A shopping for alternative was not discovered on the bigger timeframes, with the $4-$4.5 being areas the place a brief place might be assessed. On the charts, help for SAND was subsequent on the $3.29 and the $2.93 ranges.

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