SAND closing analysis: the journey through the desert continues

If you follow the crypto and NFT ecosystem regularly you must have heard of The Sandbox. The end of 2021 was extremely profitable for their token with a rise of 1352% over two months. Its price rose from $0.58 at the end of September to almost $8.50 on November 25. But since this peak, the Metaverse giant’s assets have fallen by -71%. So what about the closing of SAND tonight? Does it show hope for a change in trend?

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Towards a close that will confirm the downtrend of SAND

To fully understand the current downtrend, you have to realize how clean it is. Indeed, we can see that since the ATH, SAND has broken and retested all the levels that served as support until now in an almost academic way. Each support has been passed into resistance thanks to a bearish pullback worthy of examples from chartism books.

SAND price against the dollar (1D)

But I have a problem with the candles for the last few days. Looking at the candle from the day before yesterday we will see that SAND has not made such a low close since November 11, 2021. The asset of The Sandbox is thus breaking the support that has been holding for almost a month and a half now. If SAND continues to be so academic and closes at this level, it is obvious that it will turn this last support into resistance in the next few days.

A resistance already present? A decisive closing in progress

Zooming in H4 time unit we see something interesting. Indeed, during the breakout of the last support, a bearish pullback has already taken place. Thus starting the validation of the support in resistance. And while a second rejection would definitely mean fresh resistance, SAND already seems to be starting to go lower and heading towards the next support at $2.26.

SAND price against the dollar (H4)
SAND price against the dollar (H4)

Note that after having tried to go back above the last support, SAND suffered in 20 hours a fall of 11%. In addition, we are seeing the breakout of another small support at $2.57 which was also retested as resistance several times between yesterday and today. Finally, over this same period we can see the formation of a double top (M structure). We are, at the time of writing, ready to close below the neckline of this double-top. But we will see it better in H1.

The breakout of a validated double top, SAND on its way to its next support

This double top is more visible on a two-hour time scale but is still understandable like that. And this shows us one thing: we have already made a fence under the neck line of the structure. This would bring about a decline that is already underway as of this writing. Indeed the exercise is not easy on such pronounced declines since the asset validates bearish structure on bearish structure. Currently SAND is about to break an H1 support at 2.46 dollars which would announce the fall to the next support.

SAND price against the dollar (H1)
SAND price against the dollar (H1)

So what about tonight’s closing in a few hours? Quite honestly it is very likely that SAND will very quickly seek the next big support at 2.26 dollars. I would almost say it’s a matter of hours. But a Pullback on the H1 support at $2.46 would still be very likely. A clean break of $2.46 tonight would bring a test of support at $2.26 very quickly anyway.

It seems obvious that tonight’s close does not bode well for the price of SAND. By making the lowest closing since November 11, the asset of The Sandbox shows real buying weakness. The closing of SAND tonight will most certainly lead to a retest of the support stated above. This last support must absolutely hold. SAND having had a meteoric rise, the next would be held at $1.55, which is 32% below the current support. But we must not forget who is behind the asset. Indeed, The Sandbox recently announced a fundraising of $400 million. Despite a difficult closing this evening, it seems that SAND still has a bright future ahead of it.

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