Sandbox price will likely follow the rest of the metaverse players with a deeper and more violent crash soon. A strong bounce from key support could trap buyers and accelerate selling pressure this week. Here are the details.
Sandbox price action over the weekend was a prime example of whipsaw trading behavior. In trading, whipsaw describes a sharp increase or decrease in the price of an asset that goes against the prevailing trend.
Last Saturday’s sandbox opening price was $6.01 and dropped as low as $4.12 during the crash. There was a wild recovery with SAND’s positive daily close at $6.07 – one of the only cryptocurrencies to do so.
But that hasn’t stopped the selling pressure from continuing. Sandbox price closed 11% lower on Sunday and continued lower today. Unfortunately for the bulls, there is zero support on the daily chart within the Ichimoku system. Short-term support is not visible until Tenkan-Sen $4.57 weekly and Kijun-Sen $4.33 per week. (Ichimoku is an indicator, Tenkan-Sen and Kijun-Sen are Ichimoku parameters.)
However, weekly Ichimoku support levels may not be maintained as the oscillators remain at the extremes. The Relative Strength Index is turning south after trading above the second overbought level of 90. A possible trendline break with the Relative Strength Index signals more downside pressure.
The Composite Index is the most vital oscillator to watch. If the Composite Index dips below its moving averages and trendline, a rapid drop in Sandbox price could occur. The predicted support structure at this point is the 50% Fibonacci retracement from $3.00. In summary, oscillator values and positions warn of continued selling pressure.
Besides, if there is a daily or weekly close above the current week’s opening price, the near-term bearish view will be invalidated.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.