Big Short on SANDBOX (SAND): In-Depth Technical Analysis & Key Trading Lessons
⭐Introduction: The Sandbox, a blockchain-based virtual world introduced in 2011, offers a playground where users create, trade, and explore digital assets. Despite its visionary mission, recent trends hint at a potential big short opportunity, with a looming possibility of a significant downtrend. Let’s unravel the technical intricacies and explore the triggers that could exacerbate its bearish journey in the long run.
⛳Daily Time Frame:
In the technical analysis of SAND, the primary trend indicates a downtrend with weakness, secondary trend is also downward, and the minor trend is range-bound. In such conditions, if the key support at 0.4071 is breached and stabilized, the primary downtrend according to Dow Theory can continue its downward trend and see targets like 0.2799. It’s also noteworthy to look at the volume, where it has been significantly decreasing, indicating traders’ and investors’ disinterest in trading in the Sandbox space. However, recently, we may witness an increase in volume, signaling an impending sharp movement. If the support line at 0.4071 breaks, an increase in volume can serve as strong confirmation of momentum increase and consequently lead to a downward extension. For a long position, after the breakdown and stabilization above the resistance line at 0.4761, we can enter a buy position. However, considering that the primary trend is still downward, it is necessary to reduce risk and enter more cautiously.
🎯4h Time Frame
In the four-hour timeframe, we are witnessing the formation of a price box for SAND. The breakout of this box in either direction could attract liquidity and result in sharp movements. Additionally, an increase in volume and the entry of the RSI oscillator into overbought or oversold territory at the time of breaking in either direction can serve as strong confirmations.
✨Additional Tips
In such conditions where Bitcoin dominance (BTC.D) is increasing while Bitcoin itself is decreasing, and both TOTAL2 and USDT.D are also declining, it’s preferable to open short positions on coins that are negatively correlated with Bitcoin’s Dominance (BTC.D) movement. This way, we can potentially profit more in less time :)
🔻 Key Support Levels:
0.4071 , 0.3764 , 0.2799
🔺 Key Resistance Levels:
0.4808 , 0.5496 , 0.6318
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🕶Last Analysis
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