• The Sandbox price has seen a sharp fade after bulls failed to reclaim the 38.2% Fibonacci level.
  • SAND even risked further tanking as price action broke the 50% Fibonacci level to the downside.
  • With tailwinds emerging at the late end of last week, sentiment looks to return in favor of the bulls, reclaiming 38.2% Fibonacci level with new highs for the taking.

The Sandbox (SAND) has undergone a heavy paring back of the gains after hitting all-time highs at the end of November. With bulls trying to reclaim the lost levels, a bull trap almost formed. With the shift in global sentiment and tailwinds emerging back in cryptocurrencies, bulls got saved at the last minute and are now reclaiming significant strategic levels to the upside with the 38.2% Fibonacci level as key before trying to make new all-time highs.

SAND bulls are reclaiming strategic levels for new highs

The Sandbox saw investors fleeing the scene after profit-taking sparked a significant fade to the downside at the end of November. As bulls tried to return to those all-time highs, a bull trap almost got formed with bulls getting squeezed out of their positions, entering at the 38.2% Fibonacci level around $5.69 and getting stopped out at the 50% Fibonacci level near $4.72. But the turn in sentiment this week, coming from the US central bank, saved their strategy.

SAND sees bulls bouncing off that 50% Fibonacci level and pushing back towards 38.2% Fibonacci level to keep new all-time highs insight. Do not expect this to happen overnight as investors will want to spread their investments across several cryptocurrencies, as the current tailwinds are putting overall cryptocurrencies on the front foot. Going into Christmas and year-end, expect a squeeze to the upside with new all-time highs in the making.

SAND/USD weekly chart

SAND/USD weekly chart

The risk that comes with the last two weeks in the year for trading is thin liquidity. A shock could come from some institutional investors that are pulling their money out over the holiday season, triggering a global selloff in cryptocurrencies as retail investors will want to get out as well. In that case, expect SAND price action to give way to the 50% Fibonacci level at $4.72 and see a further downtick towards the %61.8 Fibonacci level at $3.75. That level should come as interest for investors as it holds the 55-day Simple Moving Average, which makes the level additionally attractive for investors to engage. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto bloodbath hasn’t even started yet

Crypto bloodbath hasn’t even started yet

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday. Instead of cleaning up the pink sheets from the floor, the cleaning staff are probably busy sweeping up plenty of burned-out traders that got annihilated overnight as the Dow Jones printed its worst performance since June 2020.

More Bitcoin News

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin. 

More Dogecoin News

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

The collapse of Terra's LUNA price and algorithmic stablecoin TerraUSD (UST) has sparked outrage in the crypto community. Institutions and retail investors suffered significant losses when $40 billion in LUNA and UST’s market value was destroyed within a week. 

More Terra News

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

XRP price is in a rut as it followed Bitcoin and other altcoins into a crash after the LUNA-UST debacle. Ripple, on the other hand, is relentlessly fighting against the US Securities and Exchange Commission’s (SEC) allegations and to prove that XRP token is not a security.

More Ripple News

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin price shows interesting setups from multiple time frames that hint at a confluence. This convergence occurs for the short-term bullish outlook as well as the macro bearish scenario for BTC. 

Read full analysis

BTC

ETH

XRP