What equal lows on SAND’s daily actually mean for its price trend
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
The Sandbox has been on a downtrend on the price charts since early December. One of the largest metaverse coins, SAND, the native token of The Sandbox, had a market capitalization of $1.459 billion at press time. Over the past few days, the USDT dominance has dropped from 5.1% to stand at 4.15%.
In the past, this chart has topped near the 5.5% area to mark a local bottom. The decreasing value indicated money flow into cryptocurrencies. Bitcoin’s move above $42k could see a positive impact on SAND in the weeks to come.
Source: SAND/USDT on TradingView
The long-term market structure was bearish as SAND formed a series of lower highs. However, over the past month, the bulls have been able to hold on to the $2.7-level where the price formed its previous lower lows.
This opened up a possible scenario for SAND, one where the price established a range and an accumulation phase with $2.7 as the range low. Alternatively, the bulls might also succeed in breaking above $4.13 if sufficient demand steps in.
That demand was yet to be seen, at the time of writing. Ergo, the outlook for the coin remains bearish.
Source: SAND/USDT on TradingView
The RSI on the daily flashed a bullish divergence a couple of weeks ago. Subsequently, the price bounced from the $2.7-lows to test the $3.27-resistance level, later flipping this level to support. At the time of writing, the RSI stood at the neutral 50-level.
The Awesome Oscillator registered green bars on its histogram to signal weakening bearish momentum. However, it was still under the zero line. This hinted that a local bottom could have been reached. Even so, the
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