Bitcoin failed to break through the $45,500 local highs and had also fallen below the $44,400 and $42,000 support levels in the past week. This meant that SAND recovered well from the January sell-off.
In early February, the coin was bullish as it climbed past the $4.44 resistance level but was rejected at $4.82. Does that mean SAND will revisit the $2.5 lows in the coming weeks? In other news, designer brand Gucci acquired an “unnamed amount” of land on The Sandbox, expanding its presence in the Metaverse for its Gen-Z-focused platform Gucci Vault.
SAND-12H
Source: SAND/USDT on TradingView
Based on the shift of SAND from ATH $8.48 to $2.55 in late 2021, a series of Fibonacci retracement levels (yellow) was plotted. The 38.2% retracement for this move was $4.82. In general, the price tends to bounce as high as the 50% and 61.8% levels during a retracement, before the next move in the direction of the prevailing trend occurs.
However, the $4.8 level was a strong support level and the new test in early December as the resistance in recent weeks did not bode well for SAND bulls in the coming weeks.
The price also fell below the $3.95 level, and the next support levels were at $3.29 and $2.55, with $3.55 also being a possible place for a bounce. Since the price failed to hold $4, it seemed possible that its next leg south was moving.
rode
Source: SAND/USDT on TradingView
The 12 hour RSI dropped below 40 – historically this has caused SAND to lose value rapidly in a matter of days. However, this was something that could repeat one more time. The Awesome Oscillator also fell below the zero line, highlighting mounting bearish pressure.
In addition, the Directional Movement Index showed a strong bearish trend as both the ADX (yellow) and -DI (red) were above 20.
In addition, the Bollinger bands showed that the price was near the band’s lows, while the 20 SMA (orange) on the price chart had also served as resistance recently, at $4.44.
Conclusion
Bitcoin could move to the $38,000-$39,000 area before a possible bounce. Meanwhile, selling pressure behind SAND mounted sharply as momentum indicators painted a bearish picture. A move to $2.5 could take place in the coming weeks. And the $2.2-$2.5 area, if visited, could prove to be a bargain price for SAND in the coming months.
Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice.
This post Should SAND keepers be careful when tough days lie ahead?
was published first on https://ambcrypto.com/should-sand-holders-practice-caution-as-rough-days-lie-ahead/
