Here’s what SAND traders can expect after this pattern break

SAND bears took after as it fell below key support levels, will the bulls step in?

    SAND recently found strong support as bulls aimed to provoke a break above its current pattern. Derivates data showed a bearish edge, with some hopes for a bullish revival.

With the bears provoking another liquidation rally in The Sandbox’s [SAND] market, the price action struggled to stay above crucial support levels.

The rebound from the 50 EMA invoked a downtrend toward the $0.23 support at press time.

The bulls would now aim to break the bearish edge, especially as the price approached a high liquidity zone. At the time of writing, SAND traded at nearly $0.24, up by nearly 5% over the past day.

Can bulls step in to stop the bleeding?

Source: TradingView, SAND/USDT

SAND bears found renewed power after rebounding from its 200-day EMA (green) in early June. On its way down, the price action also fell below the 20-day and 50-day EMAs to reflect a strong bearish edge.

Here, it’s worth noting that the 200-day EMA coincided with the then-trendline resistance (white), which provoked some bearish pressure.

The resulting downtrend resulted in a nearly 49% decline in just two months. However, the $0.23 level support has reignited some bullish revival hopes at the time of writing.

In the meantime, SAND found a close above its long-term trendline resistance and flipped it to support its daily chart.

The altcoin has also formed a classic falling wedge pattern. The recent bullish rebound from $0.23 support can set the stage for bulls to break out of this pattern.

Should the bulls find a strong close above the current pattern, SAND could find a way to test the $0.28-$0.31 resistance range before any bearish reversal.

On the other hand, should the price action decline below the immediate support level at the $0.23 mark, the altcoin could see an extended decline before rebounding.

The MACD lines reaffirmed the overall bearish edge in the SAND market. However, buyers should keep an eye out for a potential bullish crossover on the MACD lines.

This crossover can confirm an ease in selling pressure and help SAND retest its near-term EMAs.

Derivates data revealed THIS

Source: Coinglass

The overall long/short ratio is 0.9869, indicating a slight preference for short positions. However, top traders on Binance [BNB] have a long/short ratio of 2.6873.

Realistic or not, here’s SAND market cap in BTC’s terms

Despite the slight overall short bias in the long/short ratio, other indicators like account ratios, top trader positions, Funding Rates, and liquidations suggest a generally bullish sentiment for SAND.

The increased volume and Open Interest show growing market interest, which could potentially fuel further price movements.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Take a Survey: Chance to Win $500 USDT

 

Next: Vladimir Putin’s crypto move: Russian President legalizes Bitcoin mining
Source

Comments (0)
Add Comment