The Sandbox (SAND) Weekly RSI Falls to New All-Time Low

The Sandbox (SAND) has reached a long-term horizontal support level and broken out from a descending resistance line shortly afterward.

SAND has been falling since reaching an all-time high price of $8.48 on Nov. 25, 2021. The decrease has so far led to a low of $0.73 on June 18, 2022. Measuring from the all-time high, this amounted to a drop of 91%. 

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During the decrease, the price broke down from an ascending support line that had been in place for 623 days. A breakdown from such a long-term structure often indicates that a trend reversal has occurred. 

This possibility is strengthened by the fact that the weekly RSI for SAND has fallen below 50, and is now at an all-time low of 33. 

Currently, the price is trading just above the $0.77 horizontal support area, a level that previously acted as resistance in 2021.

SAND break out

The daily chart provides a more bullish outlook than the weekly one. 

The first reason for this is that the price has already broken out from a descending resistance lien that had been in place since the beginning of April. 

The second one is that the daily RSI has generated a very significant bullish divergence. However, it has yet to move above the high between the divergences, which would confirm the bullish reversal. 

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In order for this to occur, the price would have to move above the two closest resistance levels, which are found at $1.43 and $1.93, respectively.

Wave count analysis

Cryptocurrency trader @JacobEmmerton tweeted a chart of SAND, which suggests that another downward movement is likely prior to a bullish reversal.

Since the price has broken down from a symmetrical triangle on June 6, this indicates that it completed wave four of a five wave downward movement at that time.

So, it is possible that SAND also completed the fifth wave with its low of $0.73. If so, a considerable bounce would be expected. The closest resistance area when measuring the decrease of this five wave movement would be at $1.65, between the two previously outlined resistance levels.

Therefore, the wave count supports the possibility that a significant bounce will transpire.

For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here


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