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.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland holds support but MANA may return to $2

Decentraland price action is, at present, very indecisive. However, while the overall outlook is bearish – especially within the Ichimoku Kinko Hyo system, there is evidence that a turnaround to the upside may be coming soon. 

More Decentraland news

Sandbox continues to drift lower, bears to push SAND to $3.80

Sandbox price has made a slight bounce during the Thursday trading session, attempting a bullish daily close after three straight days of losses. However, sellers remain in control, and bulls will need to make some significant gains to convert SAND back into a bull market.

More Sandbox new

Axie Infinity bulls attempt to regain control as AXS moves toward $80

Axie Infinity price has dropped more than 10% since Monday and is nearly 57% lower than its all-time high. A bearish continuation pattern points to another leg south before buyers step in. Axie Infinity price action has been a source of frustration for bulls.

More Axie Infinity News

Solana price allows bulls to enter on double support before massive breakout

Solana (SOL) price action has been fading towards $131 after being rejected at $160, with bulls unable to make new highs. The recent break of the 200-day Simple Moving Average (SMA) looks to have been picked up by investors.

More Solana news

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis

BTC

ETH

XRP