Here’s what to expect from SAND’s near-term price after the recent drawdown

Please fol­low and like us:
Pin Share

Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

With the sell­ers clinch­ing anoth­er liq­ui­da­tion ral­ly in the Bit­coin mar­ket, the rip­ple effects in the broad­er mar­ket have been quite evi­dent. The fall below the $1.2‑mark paved the way for SAND to poke its month­ly low at the time of writing.

Post this mas­sive blood­bath, the buy­ers would aim to stall the height­ened sell-offs by pro­vok­ing a rel­a­tive­ly tighter phase.

Any fall below the $0.9625-support would posi­tion the alt for an extend­ed down­side in the com­ing ses­sions. At press time, SAND trad­ed at $0.9995, down by 18.38% in the last 24 hours.

SAND 4‑hour Chart

Source: Trad­ingView, SAND/USDT

SAND sell­ers found renewed thrust after revers­ing from its five-week trend­line resis­tance (white). On its way south, 38.2% and the 23.6% Fibonac­ci lev­el have kept the buy­ing efforts under the bear­ish check.

For near­ly 16 days, the bears pro­voked low­er troughs while main­tain­ing the $1.2‑baaseline. Thus, form­ing a descend­ing tri­an­gle-like struc­ture on the 4‑hour time­frame. An over 24% two-day drop from this set­up pulled the coin toward its Month­ly low on 12 June.

Nat­u­ral­ly, the 20 EMA (red) took a south-look­ing turn again. With the sell­ing vol­umes mark­ing a sub­stan­tial uptick, the buy­ers still had a long way to steer the trend in their favor. 

Should the recent bear­ish engulf­ing can­dle­sticks pull SAND below the $0.96-mark, the sell­ers would aim to test its long-term sup­port at the $0.86-level. How­ev­er, a bull­ish revival effort could now lead the alt into a rather tight phase in the $0.98-$1.062 range.

Rationale

Source: Trad­ingView, SAND/USDT

The RSI has touched its 20-week low at press time and was deep into the over­sold region. A like­ly revival in the com­ing weeks can posi­tion SAND for an even­tu­al bounce-back.

Also, with the CMF approach­ing its long-term sup­port, the sell­ing pres­sure could slight­ly ease. How­ev­er, unless the Aroon up (yel­low) finds a close above 30%, the alt could con­tin­ue its cur­rent slug­gish behav­ior in the days to come. 

Con­clu­sion

Giv­en the fall below crit­i­cal price points and south-look­ing EMA’s, SAND’s cur­rent trend unde­ni­ably favored the sell­ers. But the over­sold read­ings on its tech­ni­cals can help pro­voke a squeeze phase.

Final­ly, the alt shares a 54% 30-day cor­re­la­tion with the king coin. Hence, keep­ing an eye on Bitcoin’s move­ment would be vital to com­ple­ment these tech­ni­cal factors.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *