The sandbox (SAND) is likely to break out of its short-term bullish pattern, but is likely to decline below June lows.
The sand has been falling below a descending resistance line since reaching an all-time high of $8.48 in November 2021. The downside movement has so far reached the June 2022 low of $0.73. The ensuing bounce acted to validate the $0.85 area as support. ,
Later, the price made another attempt to break out of the descending resistance line, but the attempt was unsuccessful. Now, it is back again around the $0.85 area.
The weekly RSI is below 50 and it has not generated any bullish divergence. Therefore, the indicator suggests that the price will eventually break out. If so, it is likely to decline to the next horizontal support area at $0.20.
cryptocurrency trader @madmexman Tweeted a chart of SAND, which shows that the price declined below the horizontal support area of $0.45 and eventually started another upward move. This is in line with the outlook from the weekly time frame.
the sand breaks
The daily chart shows that SAND broke an ascending support line on August 15th. The breakdown occurred after several divergences from the $1.35 horizontal zone. It is possible that the downtrend in the price of Bitcoin (BTC) may have been caused by the downward movement.
Currently, SAND is only slightly above its June low of $0.73. As of now, there are no bullish reversal signs in place. The RSI is declining below a descending resistance line, is oversold and has not generated any bullish divergence.
Therefore, it is possible that the price may decline below the June lows. In that case, the next nearest support area would be $0.27, formed by the 1.61 external Fibonacci retracement level of the most recent upward move.
short term pattern
Finally, the six-hour chart shows that SAND is likely to trade inside a descending wedge. The wedge is considered a bullish pattern, which means that a breakout would be expected.
Moreover, the six-hour RSI is forming a bullish divergence, supporting the possibility of a breakout.
However, being bearish from the higher time frame, the most likely scenario would be that a breakout takes SAND to the $1 to $1.10 resistance area before another downward movement.
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