- Sandbox price faced significant selling pressure during the Friday trade session.
- SAND broke below critical Ichimoku support zones, threatening a deeper move south.
- A return to the $3 level is highly probable unless bulls step in and support price.
Sandbox price action is noticeably bearish, especially after Thursday’s route across all global risk-on markets. SAND has been hit particularly hard due to some crucial support zones breaking and giving bulls a significant warning signal that they are likely to lose control of this market.
Sandbox price positioned for a 20% drop as bear eye shifting control to sellers
Sandbox price action looked very bullish near the beginning of the trading week. It returned above the mid-point of the linear regression channel at $4.20 and the Tenkan-Sen at $4.38. Bulls were even more hopeful that a bullish continuation would occur because the mid-line of the linear regression channel was tested and held as support on Wednesday. However, that all changed on Thursday.
Sellers hammered Sandbox price lower by nearly 12%, pushing SAND below the 38.2% Fibonacci retracement at $3.83, but they couldn’t push beyond the Kijun-Sen at $3.75. As a result, SAND opened the Friday candlestick below the Kijun-Sen, adding more bearish weight to an already weak setup.
Failure by the bulls to keep SAND above the Kijnu-Sen would signal a likely move test the bottom of the linear regression channel at $3.35. Below that, the 50% Fibonacci retracement at $3 is the final primary support zone before a capitulation move would occur.
SAND/USDT Daily Ichimoku Kinko Hyo Chart
If bulls wish to stave off any further selling pressure, then at a minimum, they must push Sandbox price to a close above the bottom of the Cloud (Senkou Span A) and the mid-line of the bull flag at or above $4.15. Upside potential will likely be limited to the top of the bull flag and Ichimoku Cloud (Senkou Span B) at $4.75.