Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin Dominance took a huge leap earlier this month, when it rose from 41.5% on May 10 to 45.47% on May 19. This increase meant that Bitcoin’s share of the crypto market’s total market cap soared, although the price per Bitcoin remained roughly the same – around $29k. Therefore, altcoins lose value much faster than Bitcoin, and long-term investors would be wise to remain cautious about the movement of this metric.
For The Sandbox, there is not yet a buying opportunity for long-term horizon investors. In fact, the trend remained overwhelmingly bearish at press time.
SAND – 12 Hour Chart
The $4.4, $3.6 and $2.65 zones have been critical support levels for the past three months. The price has broken below each of them and at the time of writing, SAND was trading at $1.28. These levels formed strong resistance as SAND moved north in October and November last year.
The buyers’ next stronghold was around the $1 area, with $1.08 marked as the support level on the charts. However, the string of lower highs and lower lows over the past few months suggested that buyers are at high risk of major losses if they try to DCA a steady downtrend.
Instead, long-term investors may want to wait for signs of strength from buyers before allocating some capital to the crypto assets.
The price formed a hidden bearish divergence with the momentum indicator, RSI. The price formed lower highs (white) while the RSI made higher highs. This bearish divergence suggested a continuation of the downtrend, hence the price could move towards the $1 mark in the coming days or weeks.
The RSI has been below the neutral 50 line since early April, highlighting SAND’s bearish trend. The Stochastic RSI also formed a bearish crossover, adding a bit more confluence to the bearish bias.
The OBV did pick up slightly over the past week as it hit higher lows, but the buying volume is dwarfed by the selling volume seen in recent weeks. In addition, the CMF has also remained below -0.05 for the past six weeks. This meant that a significant flow of capital was diverted from the markets, which emphasized the selling pressure.
The indicators have aligned over the past few weeks to show seller strength, and the outlook doesn’t look great for a bullish reversal. Buyers would want to wait for market sentiment to turn, while shortsellers would be interested in SAND’s reaction at the $1.19 and $1.53 levels, as well as a breakdown below the $1 psychological support.
This post SAND investors have been exiting since January; has something changed?
was published first on https://ambcrypto.com/sand-investors-have-been-exiting-since-january-has-anything-changed/