SAND sees $0.59 flipped to resistance; is it the right time to short?

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation

• The Sandbox has famous monumental losses in latest months
• The downtrend remained unbroken as one more degree of help was damaged earlier this month

Crypto market individuals have more and more retreated into holding stablecoins similar to USDT. Tether dominance available in the market rose steadily from 5.78% in mid-August to eight.42% on the time of writing.

Altcoins similar to The Sandbox [SAND] have suffered on the value charts as a result of unyielding bearish sentiment. NFT demand has additionally tailed off, as did transaction quantity, in comparison with eight months in the past.

Learn SAND’s Worth Prediction 2023-24

Bitcoin confronted a short-term rejection close to the $16.7k mark. The king of crypto has been strongly bearish for the reason that FTX collapse. One other drop in BTC costs may negatively have an effect on SAND too.

SAND falls beneath $0.59, a slender belt stored the bears at bay

Supply: SAND/USDT on TradingView

In August and September 2021, the $0.59 degree served as an essential help degree. Previously ten days of buying and selling, this degree of help was flipped to resistance, and a drop to $0.52 ensued. The market construction on larger timeframes was firmly bearish, and extra draw back was extremely probably.

On decrease timeframes, the $0.52-$0.55 space noticed some consolidation earlier than a bounce in costs to retest $0.59 on 24 and 27 November. But, this was a weak bounce that didn’t have a lot demand behind it. The OBV noticed solely a weak transfer upward prior to now week and has been in a downtrend since August.

A transfer beneath $0.52 may take a while to materialize, however a day by day session shut beneath this degree may see fast losses to take SAND all the way down to $0.45 and $0.38. Fibonacci extension ranges additionally marked $0.335 as help.

The RSI confirmed bearish momentum, and the CMF agreed with the findings on the OBV. Promoting stress was vital in November and the downtrend was unlikely to be damaged in these fearful market circumstances.

The funding price was optimistic however the MVRV ratios have been deep within the pink

Supply: Santiment

The funding price was optimistic for SAND on Binance prior to now couple of days. On this interval SAND slowly labored its approach upward from $0.54 to $0.59. It was unlikely {that a} transfer above $0.6 would materialize quickly.

The 30-day MVRV metric went into optimistic territory for the primary time since late July however was promptly overwhelmed again down as holders opted to take revenue. In the meantime, the 365-day MVRV plumbed new depths. Subsequently long-term traders can look ahead to a shift within the larger timeframe development earlier than punting any cash on the asset.