SAND Analysis

The first full week of July leaves us with a recovery in the crypto market with +12% increase in $BTC and manages to break the micro downtrend of the last week and places the price in the first resistance zone near $22k.

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On the other hand, the dominance of BTC has generated a small upward momentum that has surpassed 44%, but still maintaining that low fluctuation range of the last week. This slight recovery gives strength to that support zone at 43% created as a pullback to the resistance broken in May.

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Despite this slight increase in the dominance of BTC we have seen tokens that managed to beat the $BTC result, as is the case of $DYDX, $MATIC or $AAVE that have recorded increases of over +30%, or $SAND, the native token of the metaverse “THE SANDBOX”, which managed to rise by +25% in the first 4 days of the week and on which we will focus this week’s analysis.

The Sandbox is a Blockchain-based virtual world that allows its users to buy, sell or exchange digital goods, objects or metaverse accessories, as well as allowing the option to create NFTs, which turns its users into creators and players at the same time. 

Its native SAND token is used to facilitate transactions within the platform and promotes decentralized governance allowing its users to share their ideas on the development of the project.

If we focus on the evolution of the price of $SAND, we can see how it had an exponential growth in the last quarter of 2021, going from trading at $0.65 at the beginning of October to its ATH at the end of November surpassing $8. 

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After its ATH, it started a downtrend that has been dragging the price to the current area, where it seems to have found support in the resistance zone of the third quarter of 2021, between $0.75 and $0.85.

If we enlarge the chart to 4h candles, we can clearly appreciate this support zone and how a bullish divergence was created in the RSI, which made the price bounce back to the downtrend line.

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From this trend line, the price rebounded to the 0.618 Fibonacci retracement zone and served as support, and began to generate rising highs and rising lows in a micro trend as we can see in detail in the 1h chart.

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On the chart we have outlined the Fibonacci retracement and the Fibonacci extension. The first one shows us the possible retracements that the price can make and the extension shows us its possible targets. 

First, we see how the price after bouncing from the 0.618 level of the retracement generates that break to the micro trend and seeks support at the long-term trend line. Subsequently it generates a slight rejection that precedes that bullish retort that has led to the +25% rise that I indicated above and which is stopped at the 0.618 Fibonacci extension zone.

If we look at the current situation, we see how a bearish divergence is being generated in the RSI on the 1h chart, so it increases the probability that the price rejects from this area between $1.30 and $1.20.  In the event of this rejection, micro support zones are found at $1.10 and $0.96. If these levels are lost, the next support zone would be the annual low in the $0.75 area.

If on the other hand, this divergence is undone or finds support in the first mentioned zones ($1.10 or $0.96) generating another bullish replica, the next move could take it to $1.52 which is where the next resistance zone is located.

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Finally, remember that nothing in our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team, we only show our analysis and investment tools and how they help us in our operations when making decisions.