The Sandbox price is trading within a narrowing channel, indicating SAND may soon experience explosive price-action.
The Sandbox (SAND) has spent the last two weeks snaking sideways around the 50% retracement level of the November rally. Furthermore, the highs are getting lower, and the lows, higher, which considering the previous volatility, is likely to change soon. Like many Metaverse-related Tokens, SAND was one of the best performing cryptocurrencies in November. From Oct 28th through Nov Nov 25th, the token increased 11x from $0.80 to $8.80, lifting the gaming and NFT project’s market cap to $7.5 billion. However, the price has ebbed lower over the last month, as has most of the market. As a result, SAND has given back half the gains and is currently trading just above $5.00.
The daily chart shows The Sandbox price is constricting in a narrowing triangle pattern, which often predicts a sudden breakout.
The 50-DMA at $4.71, and the 50% Fibonacci retracement level of $4.79, reinforce the triangle’s lower edge at $4.88. Therefore, the support is stronger than the resistance of the upper edge at $5.27. Successful clearance of $5.27 (on a closing basis) should spark a move higher toward $7.00.
On the other hand, if SAND breaks down below the 50-DMA, it could extend down to the 100-DMA at $2.80.
An upside extension looks the likeliest scenario considering the confluent support, although anything is possible in the current climate. For that reason, traders should prepare for either eventuality.
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This post was last modified on Dec 22, 2021, 07:02 GMT 07:02