Entering the year 2022, the market sellers took an upper hand over the SAND price. The pair was rejected from the $7 mark and lost 34% of its value by dropping to the $4.48 mark. The price has recently plunged below the 0.5 FIB level, indicating the token could extend the correction phase.
Key technical points:
- The SAND price RSI chart shows a bullish divergence in the 4-hour time frame chart
- The daily-MACD indicator’s lines slip below the neutral zone
- The 24-hour trading volume in the Sandbox token is $3.1 billion, indicating a 0.83% loss.
Previously when we covered an article on Sandbox token, this pair was riding its 2021 Christmas rally. However, the price couldn’t pass the $7 mark, and by experiencing a strong supply, the token was immediately rejected with an evening star pattern.
The recent bloodbath in the crypto market added to the ongoing selling and dropped the price even below the 0.5 Fibonacci retracement level.
The correction phase is the SAND price has engulfed the 20 and 50 DMA lines. However, the overall trend for this token is still bullish as it is trading above the 100 and 200 DMA.
The Moving average convergence divergence indicator projects the MACD and signal lines have just dropped below the neutral zone(0.00), indicating the increasing bearish momentum.
Sand Price Resonating In A Falling Channel Pattern
The Sandbox token is currently in a retest phase. If the price manages to sustain below this level, the coin could drop to its lower support level of $3.7. Moreover, the chart also shows a falling parallel channel pattern, leading this downfall.
Until the token is resonating inside this pattern, the price could extend the correction phase. However, this pattern is quite known for a bullish rally when the price breaks out from its overhead resistance trendline.
The Relative Strength Index(40) in the 4-hour time frame chart is steadily recovering from the oversold region. Moreover, a bullish divergence in RSI supports a bullish breakout from the falling channel.
Resistance levels: $4.61, $5.65
Support levels: $4.2, $3.5