SAND investors have been exiting since January. Has anything changed?


disclaimer: The following analysis results are the sole opinions of the authors and should not be construed as investment advice.

Bitcoin dominance made a big jump earlier this month, jumping from 41.5% on May 10 to 45.47% on May 19. This surge means that Bitcoin’s share of the crypto market’s total market capitalization has grown tremendously, even though the price per Bitcoin remained almost the same at around $29,000. As such, altcoins are depreciating much faster than bitcoins, and long-term investors are wise to keep an eye on the movement of this indicator.

For the sandbox, there are no buying opportunities yet for long-term investors. In fact, this trend remained overwhelmingly bearish at press time.

SAND- 12 hour chart

Source: SAND/USDT on TradingView

The $4.4, $3.6 and $2.65 areas have been significant support levels over the past three months. Prices each fell below and SAND traded at $1.28 at press time. This level acted as strong resistance when SAND pushed north in October and November of last year.

The next strong point for buyers is around the $1 area, where $1.08 is shown as a support level on the chart. However, a series of lower highs and lower troughs over the past few months have suggested that buyers are at high risk of taking big losses if they attempt to turn the DCA into a steady downtrend.

Instead, long-term investors may want to wait for a bullish signal from buyers before allocating some capital to crypto assets.

rationale

Sandbox: SAND investors have been leaving the market since January and there is no trend reversal yet.

Source: SAND/USDT on TradingView

The price formed a hidden bearish divergence with the momentum indicator RSI. The price formed a lower high (white) while the RSI formed a higher high. This bearish divergence signaled that the downtrend would continue, so the price could move towards the $1 level in the next few days or weeks.

The RSI has been below its neutral 50 line since early April, which highlighted the bearish trend of the SAND. The Stochastic RSI also formed a bearish crossover, adding some confluence to the bearish bias.

OBV rose slightly over the past week, forming higher lows, but buying volume is dwarfed by sales over the past few weeks. At the same time, the CMF has also fallen below the -0.05 line over the past six weeks. This meant significant capital flows were pulled out of the market, highlighting selling pressure.

conclusion

The indicators have been aligned to show the strength of sellers in recent weeks, and the outlook does not appear to be suitable for a bullish reversal. Buyers will want to wait for market sentiment to change and shorts will be interested in the reaction of SAND at the $1.19 and $1.53 levels and a collapse below the psychological $1 support.

Leave a Comment