The SAND price has seen a short consolidation between the $1 and $0.9 barrier for more than a week. Furthermore, the coin price is 4.32% up today and rebounded from the mentioned support with a morning star candle. Thus, the bullish engulfing candle backed by increasing volume indicates a genuine reversal which may attempt the $1 breakout.
Key points from SAND analysis:
- The recent correction plugged the SAND price to 0.786 Fibonacci retracement level
- The daily-RSI slope escaped from entering the oversold region
- The intraday trading volume in SAND price is $409.6 Million, indicating a 10% loss.
The SAND/USDT pair witnessed a constant downfall in the second half of August. The coin price plunged to the $0.91 mark and registered a 36% drop. This bear cycle breached multiple support levels and evaporated nearly 76% of gains obtained during the June-July recovery.
Furthermore, the SAND price mostly recently pierced the psychological support of $1. This support breakdown should have opened the path for a 21% drop to hit the $0.776 support. However, the falling price halted at the $0.91 mark, preventing further loss for coin holders.
For the past one and a half weeks, the SAND price has been wavering below the new support and the $1 mark, creating a narrow range rally. However, this consolidation is a retest phase to the $1 breakdown, and if the price shows sustainability below its, the downfall should extend further.
Thus, a breakdown below $0.9 would provide the necessary confirmation for the price to revisit $0.775.
On a contrary note, if prices jump above the $1 mark, the resulting fake out scenario will trap the aggressive short sellers. Thus, the forced liquidation from these traders will bring more buying orders to push the SAND price to the $1.08 mark.
Bollinger band indicator: the indicator displaying a large spread indicates a direction rally and strong convention from one party(in our case, sellers). Moreover, the price jump could hit the combined resistance of the midline and the $1 mark, indicating a strong supply zone for possible price reversal.
Relative Strength Index: the daily-RSI slope rebound from the oversold region neckline indicates the coin price is to stabilize for the further price drop.
Resistance levels- $1 and $1.08
Support levels- $0.9 and $0.75