Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
The Sandbox fell to $2.55 in January when there was intense selling pressure in the market and sentiment was extremely anxious. There was another sell-off in mid-February, but The Sandbox was not so badly affected by this selling pressure. In fact, since January, the token has held up better than expected. In addition, the blockchain gaming company said a few weeks ago that they had a partnership with HSBC that would see the bank acquire a piece of LAND in The Sandbox metaverse. Was the time right for a bullish run?
Purple shows the downward trend the token has been in since mid-November, from $8.48 to $2.55 in January. Based on this move, a series of Fibonacci retracement levels was plotted (yellow).
As mentioned, in the months since January, the price has not crossed those lows, but has formed higher lows, indicating the presence of buyers in and just above the $2.56 area.
Based on this demand, SAND is up about 40% from $2.68 to $3.7. Further north, the $4-$4.4 area could be an area to take in profits as sellers are expected to be strong here.
The RSI on the daily chart climbed above neutral 50 to reach 62, indicating strong bullish momentum. In addition, the Chaikin Money Flow showed a value of 0.14 at the time of writing, while the CVD has also been in the green for the past two weeks.
Together, it showed that there was good buying pressure behind SAND’s rally. The DMI also showed that a strong bullish trend was underway. The 21-period and 55-period SMAs (orange and green, respectively) were below price, showing that the recent bullishness has been relatively rapid.
The fact that the USD 2.55 has not been crossed since January, coupled with the SAND’s recent rise above USD 3.44, meant that the market structure was in favor of the bulls. The momentum was also in favor of the bulls. And there was evidence of constant demand. To the north, the USD 4-$4.4 area has seen strong resistance. A move past the USD 4.44 resistance level would likely push the SAND higher towards USD 6.2-$7.2.
This post Could SAND Rise Towards $4.4 And Beyond With Its Recent Momentum?
was published first on https://ambcrypto.com/could-sand-climb-to-4-4-and-beyond-with-its-recent-momentum/