The Sandbox price has traded aggressively downwards for more than a week. However, today’s trading session is showing signs of a bullish trend, raising the question of whether the price is likely to reverse.
The bullish push comes amidst a reduced trading volume, with data of the past 24 hours showing a 4 per cent drop. Normally, the drop would translate to a drop in price. However, today’s surge in the global cryptocurrency industry price has also increased the Sandbox price.
The Sandbox price set a new monthly price high on July 20th. Since then, prices have traded downwards, losing 20 per cent of the crypto’s value. However, in today’s trading session, Sandbox is giving bullish signals and is already up by a percentage point.
The chart below also shows today’s price gain is an exception to what has been happening in the markets for more than a week. Therefore, the question of whether we are seeing a price reversal is on the minds of many Sandbox investors and users. In my opinion, today’s bullish trend does not look like a price reversal.
In fact, looking at the wider cryptocurrency market, today’s price gain is following the industry’s surge in the past 24 hours. Therefore, I expect the prices to continue with the long-term bearish move in the next few trading sessions. There is a high likelihood that we will see Sandbox’s price drop and hit the $0.88 support level. There is also a high likelihood that the current drop may also trade below the support level.
My analysis, however, will be invalidated should the prices continue to rise and hit this week’s price high of $1.34. For starters, this is the price that Sandbox was trading at before aggressively dropping by more than 10 per cent, a trend that continued in yesterday’s trading session. If that happens, then my bearish analysis will be invalidated. It will also mean that there is a high likelihood that we will see prices continue to go up until it hits $1.49 resistance level.
This post was last modified on Jul 27, 2022, 15:00 BST 15:00