Sandbox bulls reclaiming crucial support with new price highs in reach
- 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
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.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
