Sandbox price action is noticeably bearish, especially after Thursday’s route across all global risk-on markets. SAND has been hit particularly hard due to some crucial support zones breaking and giving bulls a significant warning signal that they are likely to lose control of this market.
Sandbox price action looked very bullish near the beginning of the trading week. It returned above the mid-point of the linear regression channel at $4.20 and the Tenkan-Sen at $4.38. Bulls were even more hopeful that a bullish continuation would occur because the mid-line of the linear regression channel was tested and held as support on Wednesday. However, that all changed on Thursday.
Sellers hammered Sandbox price lower by nearly 12%, pushing SAND below the 38.2% Fibonacci retracement at $3.83, but they couldn’t push beyond the Kijun-Sen at $3.75. As a result, SAND opened the Friday candlestick below the Kijun-Sen, adding more bearish weight to an already weak setup.
Failure by the bulls to keep SAND above the Kijnu-Sen would signal a likely move test the bottom of the linear regression channel at $3.35. Below that, the 50% Fibonacci retracement at $3 is the final primary support zone before a capitulation move would occur.
If bulls wish to stave off any further selling pressure, then at a minimum, they must push Sandbox price to a close above the bottom of the Cloud (Senkou Span A) and the mid-line of the bull flag at or above $4.15. Upside potential will likely be limited to the top of the bull flag and Ichimoku Cloud (Senkou Span B) at $4.75.
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