Area of Demand Reassessed by The Sandbox

By January 8, 2022The Sandbox
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  • Since October, The Sandbox is on a null run, and has attained around a 1000% gain within a month, and has become a robust metaverse coin in the crypto market.
  • In November, SAND’s advance was stopped by the $4.5 area before the purchasers pushed the price across this area.
  • As of this writing, SAND token was bearish by a 24 hour low 0.14% with a trending price of $4.89.

The Sandbox has been rallying back since October 2021, and has skyrocketed its price by almost ten times within a month and has cemented itself as one of the most robust coins in the world of cryptocurrency. In fact, as of this writing, the total market capitalization of SAND was $4.5 Billion. Strangely, just a week before, SAND token leapfrogged to the $5.79 support level. But it was indicated that $4.5, which is an area of demand for SAND, might be reassessed by the Sandbox.

In the middle of November, $4.5 area ceased the advance of SAND for some days before the price was driven by the purchasers of the token across this region. This was revisited in the middle of December, thus, setting up an area from where the purchasers can enter.

Persistent significance level retests, resistance or support, make the levels weaker. Amalgamated with the declining trendline, it is likely to bounce from the support level and increase over the next few days.

SAND might drop down to $4.7 if the trendline is rejected, forming a triangular pattern that is eager to burst out. Although verification of the route of the breaking out would require a candle close outside the trend. If SAND is able to break over the trendline resistance, it will motivate purchasers to approach the market, and long positions may be taken using either the trendline or Fibonacci retracement levels.

Rationale

The RSI was beneath neutral 50, but it hadn’t yet reached the 36 level.

Couple of levels were noted on the daily Bollinger bands width indicator. Before the dramatic 10x surge, the daily Bollinger bands had a low breadth in October (and also mid-August, when SAND soared from $0.6 to $1). The higher level was a level where the width of the SAND BB bands had been revised several times during the year.

When the width falls below these levels, it will very certainly be accompanied by a rally. As a result, a constrained set of Bollinger bands, together with a demand region, indicated that SAND was in a favourable location to acquire.

While the indicators, as well as the price charts indicated that SAND was downtrending, it was really trading in a value position on the charts. It’s possible that a breakout will occur. However, if Bitcoin continues to fall in value, it may have a detrimental impact on The Sandbox’s pricing.

As of this writing, The SAND had the market capitalization of $4.5 Billion, and was bearish by 0.14%, trending at the price of $4.89.

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