- SAND price maintains an upside trend from its 2-month lows.
- Failure to enter a bull flag might see bearishness continuing.
- Sandbox moves in extreme oversold situations.
Sandbox (SAND) saw some wild price reactions this week. The metaverse crypto witnessed a move to $2.55 from the highs of $3.34, transacting to a 23% fall. However, SAND registered another massive uptick, gaining 40% from the $2.55 weekly lows to explore the value zone at $3.55. Selling momentum emerged again as the token touched its weekly peak.
SAND Pauses Following Massive Surge, a Close beyond $4 Will Prevent South Move
SAND price encounters a trifecta of substantial resistance – daily Tenkan-Sen around $3.50, bull flag’s bottom at $3.68, and 38.25 FIB retracement near $3.83. For now, buyers should rally Sandbox beyond these resistance zones to cancel sellers’ hopes of dragging the alt southward.
Meanwhile, oscillators might offer a brief hint of the potential direction by Sandbox price. Optex Bands remains within extreme oversold situations- hitting its new record lows and spending more periods at the lower levels. That way, the Optex Bands support a massive upward move. Nevertheless, the Composite Index highlights a different and concerning case.
The Composite Index’s red arrow depicts flat to higher peaks, while the red arrow on the candle chart highlights lower highs. That reveals concealed bearish divergence conditions and wards that the prevailing upside trends might terminate, SAND resuming its dominant downtrends. Furthermore, the hidden bearish divergence developing while SAND hit a massive resistance cluster provides a lucrative shorting opportunity for Sandbox sellers.
For now, bulls should rally the token to close beyond the 16 January high of $4.92 to annul the dominant southward moves by Sandbox. Such actions will cancel the concealed bearish divergence, alleviating any downtrend concern.
Though SAND continues its rally after hitting 2-month lows, the metaverse token should jump to a bull flag to cancel the bearish trend. That means an upward push from buyers for a close beyond $4.92. Failure to do that will have Sandbox dipping into its downtrends again. Moreover, SAND hovers in extreme oversold territory.
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