Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
The Sandbox has been in a downward trend on the price charts since early December. One of the largest metaverse coins, SAND, the original token of The Sandbox, had a market cap of $1,459 billion at the time of writing. Over the past few days, USDT dominance has fallen from 5.1% to 4.15%.
In the past, this chart has topped near the 5.5% area to mark a local bottom. The declining value indicated the flow of money into cryptocurrencies. Bitcoin’s move above $42k could have a positive effect on SAND in the coming weeks.
SAND- 1 day chart
The long-term market structure was bearish as SAND formed a series of lower highs. However, for the past month, the bulls have managed to hold onto the $2.7 level where the price formed its previous lower lows.
This opened up a possible scenario for SAND, a scenario where the price established a range and an accumulation phase with $2.7 as the low range. Alternatively, the bulls may also manage to move above $4.13 if there is sufficient demand.
That requirement was unknown at the time of writing. So, the outlook for the currency remains bearish.
The RSI on the daily showed a bullish divergence a few weeks ago. Then the price bounced from the low of $2.7 to test the $3.27 resistance level, and later flipped this level to support. At the time of writing, the RSI was at the neutral 50 level.
The Awesome Oscillator registered green bars on its histogram to indicate a weakening of bearish momentum. However, it was still below the zero line. This hinted that a local bottom could have been reached. Still, the bullish impulse has not yet been seen.
The OBV has moved south in recent months to indicate that the volume of sales has exceeded the volume of purchases. This lack of demand could allow SAND to drop lower on the charts.
The 21 and 55 period moving averages formed a bearish crossover.
Although the price charts indicated a possible bullish scenario, the tendency was still bearish. The market structure pointed to further downside if SAND is rejected at or before $4.13. Even a break of the downtrend cannot definitively signal the end of the downtrend.
This post What do equal lows on SAND’s daily mean for price performance?
was published first on https://ambcrypto.com/what-equal-lows-on-sands-daily-actually-mean-for-its-price-trend/