Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SAND was highly bullish on the 4-hour chart.
- It could retest or break out above $0.4524, but a break below current support at $0.4319 would invalidate the above bias.
Sandbox [SAND] was an altcoin that rallied after Bitcoin [BTC] surged in the new year. BTC rose from $16.52K on 1 January to $16.96K on 4 January, while SAND lifted from $0.38 to $0.44 in the same period.
At press time, SAND was trading at $0.4418 and appeared poised to retest the 100% Fib level of $0.4524.
Read Sandbox’s [SAND] Price Prediction 2023-24
Is a retest of $0.4524 likely?
Source: SAND/USDT on TradingView
At press time, the indicators on the four-hour charts showed an extremely bullish SAND. For example, after a slight pullback, the Relative Strength Index (RSI) was back in the overbought territory. This indicated that buying pressure remained strong.
The Directional Movement Index (DMI) is further evidence of the strength of buyers in the market. Buyers had the upper hand at 36 points, while sellers were at 12 points. Still, there was a slight downward trend on the buyers’ side, which may indicate a slight decline in buying pressure.
In addition, the on-balance volume (OBV) reached new highs, indicating increased trading volume, which reinforced the recent buying pressure and price increase.
If the momentum continues, SAND could rise and reach $0.4524 again. Risk-averse traders can take profits at this level.
However, a break below the immediate support at $0.4319 would invalidate the above bias. Such a downside move could find new support at the 61.8% Fib level of $0.4228.
How many SANDs can you get for $1?
Weekly SAND HODLers saw gains as volume and investor outlook improved
Source: Santiment
The seven-day Market Value to Realized Value (MVRV) ratio was positive, according to Santiment. This showed that weekly SAND HODLers gained over 5%. However, monthly, quarterly, and annual hodlers suffered losses.
SAND’s outlook also improved as weighted sentiment remained positive, and the number of active addresses increased, which could indicate a possible increase in trading volume in the near term.
If the momentum continues, SAND could reach $0.4524 again. Nevertheless, the overbought condition of the RSI is ripe for a price reversal, and investors should keep an eye on it, along with the movements of BTC.
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