The Sandbox (SAND): New Bearish Leg For Metaverse Crypto?

In this Monday TA news, we are going to focus on one of the cryptomonnaies of the metaverse, the SAND of The Sandbox. A sector that has been struggling for several months, it is nonetheless interesting to look at certain assets specific to this ecosystem. Thus, we will analyze the key levels of the asset to understand the evolution that has taken place in recent weeks while identifying the bias to have for the end of the year 2022 as well as the first weeks of 2023. on the charts to study the asset.

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SAND just broke a key level on the downside

Price of SAND against the dollar weekly scale (1W)
Price of SAND against the dollar weekly (1W)

First, let’s look at the weekly scale of the asset in order to take a step back from the evolution that has taken place on prices in recent weeks. We can see the dynamics of the SAND on the pivot zone. Having managed to maintain this zone for several months, the bearish breakout caused the asset to head towards the $0.54 which also gave way, which opens the way to $0.32.

Moreover, since April 2022, the asset has never managed to retake the EMA13, which is a testament to the downtrend power. Currently, the asset is trading in an area where there has been little price fluctuation, which can make it difficult to analyze and find key levels.

From a weekly analysis perspective, for the SAND to attempt to make a reversal to the upside, it will have to come from the peak that took place at the beginning of December while trying to recover, first, the EMA13 and then, in a second time, the weekly pivot zone.

Other key levels need to be monitored?

SAND price against the dollar on a daily scale (1D)
SAND price against the dollar on a daily scale (1D)

Now we can look at the daily scale to determine additional levels on which to the course of the SAND may have the opportunity to react. You saw it atweekly scale, the bias to have on the asset is bearish. Over the next few weeks, if the market opts for a continuation of the current momentum, in addition to a return to $0.32we can establish two additional intermediate levels.

These levels have been identified with past price movements as of the first half of 2021. These two levels are:

Although a price reaction is not mandatory, buyers may react and allow price to bounce back into these price areas. In addition to these intermediate levels, we must also note the presence of the MA100 at the confluence of the pivot zone and the passage of the EMA13 below $0.54, which could put the hypothesis of a recovery from this level in difficulty. technical over the coming weeks as this is the first step to setting up a bullish reversal.

SAND is underperforming against the king of cryptocurrencies

Price of SAND against Bitcoin on a weekly scale (1W)
Price of SAND against Bitcoin on a weekly scale (1W)

To complete this analysis, we can look at the SAND/BTC pair to analyze the two-force relationship between the two assets and determine if SAND is outperforming or underperforming. The finding is clear, SAND is in big trouble against the king of cryptocurrencies. Since the beginning of 2022, the asset has been experiencing a powerful bearish force by chaining multiple rejections on the weekly EMA13.

Having lost a key level which corresponds to 3549 satoshis, the asset is moving at high speed towards 2500 satoshis. If he does not manage to bounce back on this level, SAND will continue to be in difficulty and will head towards 1171 satoshis. Of course, it is not because an asset is outperforming against Bitcoin that it will be able to register good bullish performances. However, in the current context, an outperforming asset against Bitcoin may tend to register a smaller decline. This is further confirmed when bitcoin dominance is on the rise, which we saw in yesterday afternoon’s crypto point.

Here we are at the end of this analysis on SAND, one of the major assets of the metaverse ecosystem. Unfortunately, you can see the strength of the downtrend, whether against the dollar or the Bitcorner. Thus, the situation not being easy, the asset will have to recover as quickly as possible with a resumption of the levels identified throughout the analysis to hope for a trend reversal or, at the very least, a slowdown in the downtrend.

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