Altcoins

Why SAND still holds promise despite a reversal playing out on the charts

For over seven weeks, SAND discovered an oscillating vary between the $2.7 and $4.8-mark. Thus, the bulls propelled a powerful restoration from the $2.7 base stage whereas marking a rising wedge on its 4-hour chart.

From right here on, the bulls might steer the worth to check the $3.6 mark earlier than dealing with some resistance at that stage. An in depth beneath this stage might trigger a take a look at of the $3.5-zone earlier than the bulls would attempt to snap the resistance. At press time, SAND traded at $3.5707.

SAND 4-hour chart

SANDUSDT 2022 03 29 15 01 54

Supply: TradingView, SAND/USDT

The earlier uptrend noticed distinctive good points because the altcoin touched the $4.8-resistance. Nevertheless, because the bears turned the tide of their favor, they propelled a steep downturn in direction of its long-term $2.7-$2.8 assist vary.

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In the meantime, SAND famous a forty five.7% decline (from 9 February) because it fell in direction of its one-month low on 24 February. Since then, SAND broke out of its down-channel however struggled to discover a robust rally till final week. The alt noticed a 34.2% ROI over the past two weeks because it closed above its 20/50/200 EMA.

Now, the present shopping for spree would assist SAND to check the $3.6-mark resistance. Because the bears have defended it for greater than a month, a potential reversal from there might propel a take a look at of its 20 EMA (crimson). Any fall beneath that will affirm a development reversal. Lastly, a detailed above the $3.6-mark would open up restoration gates in direction of the $3.9-$4 zone. 

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Rationale

Capture 52 scaled

Supply: TradingView, SAND/USDT

After a formidable restoration, the RSI positioned itself above the equilibrium and favored the patrons. The latest shut above the 59 mark has set it up for a probable take a look at of the 66-level. A reversal from that stage might see a short-term setback for SAND earlier than the continued upturn.

Additionally, not too long ago the worth motion marked larger peaks whereas the OBV maintained its present resistance level. This studying stored the probabilities of a pullback alive.

Conclusion

Contemplating the reversal sample and the flatter OBV peaks, a potential setback in direction of the $3.4 zone may very well be doubtless. However with the 50 EMA leaping above 200 EMA, SAND might proceed its up-rally. And steadily goal to step its foot within the $4-mark within the days to return. 

Furthermore, the alt shares a staggering 80% 30-day correlation with the king coin. Therefore, keeping track of Bitcoin’s motion could be important to enhance these technical components.

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