The Sandbox (SAND) is struggling to sustain the upward movement that began on June 18. It has nearly returned to its June lows.
SAND has been falling since reaching an all-time high price of $8.48 on Nov. 25, 2021. The downward movement continued until June 18, 2022, and led to a low of $0.73.
The price bounced afterward, validating the $0.75 horizontal area as support. This is a crucial horizontal area since it had previously acted as resistance from March – Nov. 2021.
Currently, the price is trading at $0.97, measuring a decrease of 88.5% since the all-time high.
Divergence leads to breakout
The daily chart provides a more bullish outlook than the weekly one, which however does not confirm the possibility of a full bullish reversal.
On the bullish side, the RSI generated bullish divergence which led to an upward movement that caused a breakout from a descending resistance line that had been in place since the beginning of April.
On the bearish side, the price has struggled to sustain the upward movement and is approaching its June lows once more.
The RSI could find support at the current level of 40 and bounce, but if it does not, it will likely mean that the breakout will not be sustained and a new low will follow.
Short-term SAND movement
Cryptocurrency trader @BigCheds tweeted a chart of SAND, stating that a short-term decrease is expected.
Since the tweet, the price has decreased considerably and broke down from an ascending support line on June 28.
The downward movement has taken SAND back to the 0.618 Fib retracement support level at $0.97. In turn, this is the final support area prior to the June lows.
So, if the current level fails to initiate a bounce, new yearly lows would be expected.
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