Sandboxstarted to push the bears on the price chart towards the $5 level, creating a “bear trap” against them. Although SAND looked like it was ready to descend towards the $4 level, it managed to break technical expectations and the price managed to move up.
SAND If it succeeds in the bear trap and continues to maintain its price on the upside, it will retest the $5.68 and then the $6.50 levels.
The sandbox looked very slow on Monday after a rejection near the $5.68 level, which is acting as the “monthly pivot,” and technical indicators were showing that the price would move to the downside. Despite the SAND price dropping below $4.72, the bulls have stepped in and are trying to squeeze the bears out of their short-term entries by hitting “stop levels” at $5.
Once the selling pressure begins to subside, it is possible to expect a rise and we could see a return to $5.68. This could result in testing a re-entry above the green ascending trendline at $6.50.
Metaverse altcoin, experienced a choppy price action and rejected the upside of the monthly Pivot for December at $5.68. Price action bounced back from barely reaching the monthly Pivot and dropped below technical support as the bulls tried to bounce off the technical level at $4.72.
The short-term bears entered the breakout of this technical level and placed their stops above $4.72, hit by the bulls retracing the second level this morning.
With this bullish reaction, it is quite important to wait for the selling pressure to subside a bit and open the door for the bulls to push the price action in SAND back to $5.68 on the monthly Pivot.
A headwind from some positive headlines could help boost the sentiment and see a break above the monthly Pivot and a possible re-entry of an uptrend at the green uptrend line with the next target around $6.5.
If more positive news comes with a possible “Christmas rally”, even a rally towards $8.0 can be expected in these remaining final trading days of 2021 as all stars align and markets are at full risk.
Event risk could slide further this week as several central banks are scheduled to make their final monetary policy announcements for 2021. With high levels of inflation and GDP overheating in some advanced economies, expect some “hawk hues” that could negatively impact the market.
By pushing investors into cash-only positions, they may want to unplug risky assets like stocks and cryptocurrencies. In this case, it would be better to expect a nosedive reaction from the 55-day Simple Moving Average (SMA) below $3.82, which does not stop before $2.50 with the monthly S1 support level.
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.