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It has been three weeks since SAND broke out of its wedge sample with the bears able to take over. The token simply concluded one other bearish week by being oversold, earlier than recovering by roughly 38%.
A recap of SAND’s worth motion reveals that it broke under help at $2.69 on 26 April. This was after getting into the slim worth vary dictated by help and resistance in its wedge sample. SAND not too long ago bottomed out at $0.96 on 12 Might. This represents a 58% drawdown ever because it dropped under the help line.
Supply: TradingView
At press time, SAND was buying and selling at $1.34 – At a slight premium on its newest native low. The slight rally on 14 and 15 Might was underpinned by some accumulation, particularly because the alt dove into oversold territory. The identical will be evidenced by the findings of the RSI and MFI.
Supply: TradingView
SAND’s Directional Motion indicator additionally highlighted the cryptocurrency’s sturdy bearish momentum over the previous couple of days. The -DI crossed under the ADX, signifying pattern weak spot inside the oversold zone.
This consequently meant that the situations have been ripe for the bears to regain management.
Will the bulls retain management or give in to the bears?
The cryptocurrency market continues to be in a state of worry and uncertainty, particularly after current occasions. It would clarify why the present bounce-back just isn’t as sturdy as anticipated, given the magnitude of the most recent draw back. In different phrases, buyers are nonetheless ready to see how the market will behave over the subsequent few days.
So far as on-chain metrics are involved, SAND’s Provide on Exchanges (as a share of whole provide) has dropped barely since 13 Might. This statement additionally aligns with an uptick in whale transaction counts (higher than $100k value of SAND). The identical was an indication of accumulation when SAND dipped into the oversold zone.
Supply: Santiment
Its newest worth pump coincided with The Sandbox’s announcement on 13 Might. The mission revealed airdrop plans, in addition to a brand new 2022 roadmap for LAND house owners in The Sandbox Metaverse.
This announcement might have contributed to SAND’s shopping for strain at its current lows. Nonetheless, it won’t be sufficient to climate any further downward strain. The latter stays a extremely possible consequence if the crypto-market fails to get well from the prevailing FUD.
