Sandbox’s native token SAND is trading near a critical long-term support zone this week, as analysts assess whether the asset can stabilize after a prolonged 99% decline from its all-time high.
SAND is still trading in a descending channel on the price chart, with the token repeatedly finding support in the $0.14-$0.11 area. SAND remains above the crucial $0.10 level, which analysts see as accumulation rather than a breakdown.
From a technical analysis point of view, it has been suggested that in order to confirm a bullish move, a breakout above the resistance level at $0.22 to $0.26 needs to occur.
Once such a breakout happens, potential targets for the asset are at $0.65, $1.50, and $3.50, with further targets at the asset’s all-time high of $8.48.
On the other hand, if the price closes below $0.10 on a higher timeframe, this bullish outlook would be invalidated, opening the door for a drop toward $0.05-$0.035.
Also Read: Sandbox (SAND) Rally Strengthens: Key Breakout Signals Potential to $0.22
Momentum indicators appears to support the idea of easing selling pressures. The RSI-14, is currently ranging around 43.7, with the moving average ranging around 34.
This shows improving momentum, as it comes after the near-oversold conditions of the token. Even though the RSI is still below the 50-level, the recent increase shows improving momentum and decreasing downside accelerations.
Additionally, the fact that the MACD, remains in negative territory indicates that the bearish trend continues. However, the fact that the histogram bars are becoming flat suggests that the bearish momentum may be slowing down, as evidenced by the fact that the MACD line and signal line are getting closer to each other.
For the weekly timeframe, the price of SAND still holds below all key exponential moving averages like the 20 EMA, 50 EMA, 100 EMA, and 200 EMA.
The 200 EMA resistance near the $0.59 level has been a key long-term resistance level for the price of SAND, while the repeated rejections from the mid-range EMAs have been a testament to the selling pressure in the market.
Currently, the price action continues to track the lower Bollinger Band as downside volatility remains extremely high and market conditions are extremely tense.
While a technical bounce can be seen in the market, all analysts are of the view that in order to say the market has stabilized, the prices will need to close above the 20- and 50-day EMA group and then close above the Bollinger Band’s midpoint.
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