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

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

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 18^th 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 13^th 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 3^rd 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.