Sandbox dives lower by 30% and find buyers, SAND could still move down to $3

Sandbox price to face strong correction after completing a bearish time cycle.
Extreme overbought conditions may have weighed on Sandbox before the crypto flash-crash.
A corrective move is essential to maintain a healthy market.

Sandbox price has been one of the primary movers in the metaverse and gaming token space, easily outperforming its peers. Its performance since October 2021 has been nothing short of spectacular, but a real pullback and corrective move post flash-crash is coming up.

Sandbox price gain of 1,010% collapsed over 30% on early Saturday trading

Sandbox price moved from $0.75 on October 28th 2021, to its most recent all-time high of $8.48 on November 25th – a nearly insane increase over a monthly period. However, nothing goes up forever, and SAND is at particular risk of experiencing a violent move lower.

In Gann analysis, W.D. Gann wrote about a time cycle he called his 'death cycle.' It is a seven-week (forty-nine to fifty-two day) cycle. Gann wrote that any instrument trending strongly or at an excessive pitch over seven weeks has a very high probability of a swift corrective move or broader trend change. In the case of Sandbox price, the move has been strong and at an excessive pitch.

The Relative Strength Index is set up for a bull market, with the overbought levels at 80 and 90. Sandbox price has almost no peers on the weekly chart when it comes to surpassing the 90 level. Additionally, the Composite Index has printed new all-time highs. Add in the massive gap between the body of last week's weekly candlestick and the Tenkan-Sen, and you have a recipe ripe for a significant drop.

Sandbox price has an anticipated retracement to the 50% Fibonacci retracement at $3.00. This 50% Fibonacci retracement is drawn from the all-time high to the low of the weekly strong-bar – the now-standard method to draw Fibonacci retracement set by Connie Brown.

SAND/USDT Daily Ichimoku Chart

However, Sandbox price remains in price discovery mode, so any small dips may continue to get bought and new all-time highs will continue to be made. Caution should always be observed when any instrument is trading in a parabolic state.

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