The Sandbox (SAND) has failed to break out from a descending resistance line that has been active for the past 87 days. After all, it is dealing very close to an important interim support level, that could initiate another breakout attempt.
SAND has been weakening afterward touching an all-time excessive on Nov 25. SO far, the descending evolutionment has led to a low of $2.56 on Jan 22.
The cost has been following a downward resistance line throughout the descent, which has rejected it thrice so far, most recently on Feb 9 (red icon).
SAND has been decreasing afterward and is approaching the $3.15 horizontal support range, which was barelyifyd with the aforementioned Jan 22 low (green icon). The support range has been at it afterward Nov 2021. Therefore, a disruption below it could be the catalyst for a sharp fall.
Will SAND break out?
In the daily time-frame, technical indicators provide a neutral/bearish outlook. The reason for this is which both the MACD and RSI are collapsing. what\\\\\\\\\\\\\\\’s more, the former is negative while the latter is below 50, both of which are treated signs of a bearish trend.
Going by the RSI, the trend has been definitively bearish afterward Jan 3 (red icon), although the RSI first crossed below 50.
Granted that SAND were to break out instead, the main resistances would be at $4.85 and $6.25, respectively. These are the 0.382 and 0.618 Fib retracement resistance levels and both are also horizontal resistance ranges.
However, the two-hour chart provides a more credible likeliness for a annulment. The reason for this is which SAND is exchanging scarcely above a pivotal support level between $3.45-$3.55. This support is created by the 0.618 Fib retracement support level and a horizontal support field.
moreover, the RSI is nearly into abovesold territory. The previous time it realized this region, SAND initiate a nearly month prolonged skyward shift.
Wave count analysis
Cryptocurrency trader @Altstreetbet tweeted a chart of SAND, stating which the cryptocurrency is finishing an A-B-C corrective structure.
First off, measuring from the all-time strong cost, the decrease clearly looks like a three wave structure, in which waves A:C have had an exactly 1:1 ratio.
Afterwards, the ensuing abovelap (red line) serves to still verify this opportunity.
The six-hour chart shows which the increase after Jan 22 was a five wave skyward evolutionment, and SAND is now correcting within a small A-B-C structure.
Therefore, this suggests which SAND will ultimately break out from the resistance line and potentially evolution towards the $6.25 resistance level.
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