The Sandbox (SAND) is trading inside a corrective short-term pattern, despite breaking above a longer-term descending resistance line. The direction of the trend is still uncertain.
SAND was falling below a descending resistance line since hitting an all-time high of $8.50 in November. The downside movement reached a low of $0.74 on June 18, 2022.
Later, the price started to rise and managed to break out of the line on June 25. At that time, the line was for 213 days. Even though a month has passed since the breakout, the price is still hovering close to the breakout level. It has decreased by 85% when measured from the all-time high.
The nearest horizontal resistance is at $1.45 while the nearest Fibonacci resistance is at $3.75.
short term movement
The daily chart does not provide a conclusive indication as to what is the direction of the trend. While SAND has reclaimed the $1.10 horizontal level after going down previously, the daily RSI is moving freely above and below 50. It is considered a sign of neutral tendencies.
cryptocurrency trader @ eliz883 Tweeted a chart of SAND which shows a short term breakout.
However, since the tweet, the price has corrected significantly and is trading in the lower side of an ascending parallel channel, which is considered a corrective pattern. Moreover, it was rejected by the $1.30 horizontal resistance area (red icon).
Unless it manages to retest the middle of the channel, the trend cannot be considered bullish.
sand wave count analysis
Due to the considerable overlap in movement inside the channel, it is possible that there is a full ABC moving flat correction (red icon) in the movement.
If so, there could be an upward move towards $1.75, giving a 1:1 ratio to both sides of the rise (highlights).
However, a breakdown from the channel would invalidate this particular wave count and suggest that the trend is bearish instead.
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