Sandbox sees investors fleeing the scene as gains are being pared back

By January 14, 2022The Sandbox
Click here to view original web page at www.fxstreet.com
  • Sandbox investors are not returning to the scene as bulls refrain from erasing Thursday’s fade
  • SAND price action enters a squeeze with bulls being pushed against the $4.72 level and stopped out on a break below.
  • Expect a possible dip further to the downside if no help comes from global markets.

The Sandbox (SAND) looked to be starting an uptrend after the perfect technical bounce off the monthly S1 support level at $4.19. Instead, the rally was short-lived and underwent a fade yesterday with investors reluctant to pick price up off the floor of the $4.72 historical level. If global markets don’t rally today, expect a dip to the downside with bulls getting stopped out and a nosedive back towards $4.19.

Pressure is mounting with bulls cut short and pushed back at the entry

This week, the Sandbox was on the same page as most other cryptocurrencies, having found support and delivered promising signs of a new rally that could set the tone for 2022. But instead, markets and participants are having issues reading between the lines on central bank tightening from the FED – and what that means for equity investments and portfolio rebalancing. With that, cryptocurrencies took a step back yesterday, and SAND failed to pare back yesterday’s incurred losses.

SAND bulls look to have fled the scene as bears push price-action back down against the $4.72 level that holds some historical importance in SAND’s brief existence. A break below would trigger another sharp sell-off as stops run, and sell volume gets enlarged. A test or break below the monthly S1 at $4.19 could then follow..

SAND/USD daily chart

SAND/USD daily chart

Although European equities are red, US futures are mildly green, so sentiment could quickly shift once the US cash trading session starts. This will see a bounce off the historical level and a swing to the upside, touching the 55-day Simple Moving Average (SMA) at $5.60 or the monthly pivot just above. That would preposition SAND bulls for an attack on the red descending trend line in the week to come.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

All Today's Crypto News In One Place