Going into 2022, market sellers have dominated the SAND price. The pair was rejected from the $7 mark and lost 34% of its value on a drop to $4.48. The price recently dipped below the 0.5 FIB level, suggesting that the token could extend the correction phase.
Main technical points:
- The RSI chart of the SAND price shows a bullish divergence in the 4-hour time frame
- The lines of the daily MACD slide below the neutral zone
- The 24-hour trading volume of the Sandbox token is $3.1 billion, showing a loss of 0.83%.
The source-Tradingview
Previously when we mentioned an article about Sandbox token, the pair is holding a rally on Christmas 2021. However, the price failed to break through the $7 mark and due to strong supply, the token was immediately rejected with a star pattern. night.
The recent bloodbath in the crypto markets added to the ongoing selling and drove the price even below the 0.5 Fibonacci retracement level.
The correction phase is that the SAND price has engulfed the 20 and 50 DMA lines. However, the overall trend of this token is still bullish as it is trading above the 100 and 200 DMA.
The moving average convergence divergence indicator (MACD) and the signal lines have just dropped below the neutral zone (0.00), showing that the bearish momentum is increasing.
The price of sand resonates in a descending channel pattern
The source- Tradingview
The Sandbox token is currently in re-testing. If the price sustains below this level, a drop to the lower support of $3.7 is possible. Furthermore, the chart also shows a bearish parallel channel pattern, which led to this drop.
Until the token resonates inside this pattern, the price could extend the correction phase. However, this pattern is quite known for a rally when the price breaks out of its overhead resistance trendline.
The Relative Strength Index (40) in the 4-hour time frame is recovering steadily from the oversold zone. Furthermore, the bullish divergence in the RSI supports a breakout in the uptrend from the down channel.
Resistance: $4.61, $5.65
Support level: $4.2, $3.5