Sandbox (SAND) – Expected to come under renewed selling pressures

Sandbox (SAND) – Expected to come under renewed selling pressures

Posted on Monday, September 26 2022 at 9:11 pm GMT+0000

Sandbox’s (SAND) recent recovery from a more than 8-month low of 0.733 has snagged near the upper line of the regression channel stretched from July’s peak, as downside forces remain a frontrunner in the metaverse and gaming ecosystem platform.

The negative bearing of the 40- and 100-day exponential moving averages is endorsing the medium-term bearish picture while the technical indicators are raising the stakes for additional declines in the coming sessions. The Stochastic oscillator reclaimed a bearish charge below the 50-neutral threshold, while the -DI and the +DI of the ADX indicator are negatively aligned with the ADX itself bouncing above 20 hinting at a strong bearish trend.

Nevertheless, sellers will become more confident that the descent will gain more legs following a close below the recent bottom of 0.801. In such a scenario, those are expected to target the critical June 18th bottom of 0.733, near which the mid-regression line resides. A break of this key support barricade could be a tough blow for the price, as it could in the aftermath fall to the 0.579 0.585 area of congested lows posted between August and September 2021.

On the other hand, if buyers re-emerge and steer the price higher, they could face initial upside constraints from the upper line of the channel ahead of the tough 0.947 – 0.962 resistance area linking the last Saturday’s high and the 40-day exponential moving average. A thrust over the latter will open the gates for the 1.00 round number and the adjacent July 13th inside swing low of 1.048. Further north, the 100-day exponential moving average at 1.180 will try to impede buyers from advancing towards the August 3rd inside bottom of 1.230.

Summarizing, negative risks are increasing, and Sandbox is expected to come under massive selling pressures following a decisive close beneath 0.733.