The 4hr chart shows buyers finally clinched higher troughs for more than two weeks after two months of declines. Meanwhile, Sandbox refrained from massive volatility as SAND hovered around the POC (Point of Control) in the high liquidity territory.
While market players could target to overcome the constricted phase, the Sandbox chart boasted some factors to consider in the upcoming sessions.
A decline under the broadening wedge’s lower trend-line might welcome short-term setbacks before SAND sees a bullish resurge. While publishing this content, the metaverse token traded near $1.31, gaining 0.82% within the past day.
4Hr Timeframe
Liquidations in the broad market had SAND sellers gaining renewed strength from mid-April peaks. Meanwhile, the trend-line resistance (current support) remained a crucial value area amidst the southbound journey.
An approximately 61.3% decline from May 5 dragged the altcoin towards 6-month lows on May 12. Meanwhile, SAND curbed volatility following revival from the baseline at $1.13 to transpose in a 2-week compression. However, buyers struggled to secure a closing beyond the 20 Exponential Moving Average.
The ascending wedge pattern saw buyers flipping the trend-line resistance to the support area. Nevertheless, Sandbox buyers are likely to encounter challenges in modifying the rally as the EMA 20 refuse to form a bullish cross with the EMA 50.
A possible break under the wedge might see SAND testing the value area of $1.18 before bulls join to alter the trend. A rebound from the region might trigger entries.
Reasoning
The Relative Strength Index (RSI) shows bears have a brief edge within the prevailing market structure. Nevertheless, short-term bullish resurgence hopes remained due to the OBV’s bullish divergence. Meanwhile, the Chaikin Money Flow requires a closing above the zero line to overcome the squeeze phase and the 23.6% shackles for a sustained rally.
Final Thought
SAND’s current setup remains somewhat fragile. Continued selling actions might trigger a closing beneath the wedge, leading to a 7% decline to explore the $1.18 mark. Nevertheless, the on-balance volume chalking a bullish divergence (on the 4hr chart) suggests a recovery beyond the prevailing downward channel might stretch the squeeze period before a trend-shifting move.
Lastly, SAND shares a whopping 97% correlation with BTC. Enthusiasts should watch Bitcoin’s actions to supplement the above technical indications.
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