Potential Reversal May Slump SAND to $1

Since the Sandbox (SAND) recovery rally began in late June, the coin price has failed twice to pierce the $1.28 resistance. However, with some minor pullback to replenish the bullish momentum, the coin buyers pushed the price back to this mentioned resistance, but will they surpass it this time?

Key points: 

• The SAND chart shows a high supply zone at a $1.27 resistance
• The coin chart shows four consecutive green candles in the daily time frame chart
• The intraday trading volume in SAND price is $341 Million, indicating a 132% rise.

Source- Tradingview

During June’s first half sell-off, the SAND holders lost $1.275 support, and since then, the coin buyers have struggled to surpass this flipping resistance. Moreover, amid the recent uncertainty spread across the crypto market, the SAND price has thrice retested the mentioned resistance, indicating the traders are aggressively selling at this mark. 

However, the decreasing bearish pullback with each reversal from $1.27 indicates the losing bearish momentum. Furthermore, with a morning star candle, the last retracement reverted from the $1.05 mark. 

The resulting rally has surged the SAND price by 15.64% in the past four days, nearing the overhead resistance($1.27). However, the decreasing volume during the rally suggests a weakness in buyers’ commitment. 

If possible, a reversal from the above resistance would extend the ongoing consolidation for a few more sessions and mostly likely plunge the price back to $1.

Alternatively, if bullish momentum surpasses the overhead supply pressure of $1.28, the coin price would trigger a new recovery rally.

Technical indicator

The ADX indicator shows an unwavering downfall amid ongoing uncertainty in the crypto market and accounting weakness in sellers’ momentum. Thus, divergence increases the possible breakout from $1.28.

On June 24th, the coin price breached the indicator midline suggesting the improving sentiment of market participants. M Moreover, the breached midline now acts as viable support and assists buyers in maintaining trend control.

• Resistance levels- $1.2 and $1.53
• Support levels- $0.98 and $0.79.3