Sandbox sees investors fleeing the scene as gains are being pared back

Sandbox investors are not returning to the scene as bulls refrain from erasing Thursday’s fade
SAND price action enters a squeeze with bulls being pushed against the $4.72 level and stopped out on a break below.
Expect a possible dip further to the downside if no help comes from global markets.

Filip Lagaart FXStreet

The Sandbox (SAND) looked to be starting an uptrend after the perfect technical bounce off the monthly S1 support level at $4.19. Instead, the rally was short-lived and underwent a fade yesterday with investors reluctant to pick price up off the floor of the $4.72 historical level. If global markets don’t rally today, expect a dip to the downside with bulls getting stopped out and a nosedive back towards $4.19.

Pressure is mounting with bulls cut short and pushed back at the entry

This week, the Sandbox was on the same page as most other cryptocurrencies, having found support and delivered promising signs of a new rally that could set the tone for 2022. But instead, markets and participants are having issues reading between the lines on central bank tightening from the FED – and what that means for equity investments and portfolio rebalancing. With that, cryptocurrencies took a step back yesterday, and SAND failed to pare back yesterday’s incurred losses.

SAND bulls look to have fled the scene as bears push price-action back down against the $4.72 level that holds some historical importance in SAND’s brief existence. A break below would trigger another sharp sell-off as stops run, and sell volume gets enlarged. A test or break below the monthly S1 at $4.19 could then follow..

SAND/USD daily chart

Although European equities are red, US futures are mildly green, so sentiment could quickly shift once the US cash trading session starts. This will see a bounce off the historical level and a swing to the upside, touching the 55-day Simple Moving Average (SMA) at $5.60 or the monthly pivot just above. That would preposition SAND bulls for an attack on the red descending trend line in the week to come.