Will SAND’s upcoming resistance push it below its current price floor
If you have been closely watching SAND’s performance, you may have noticed that it consolidated into its current range. The $2.8 price level seems to be acting as a healthy price floor. However, that might soon be called into question now that the sideways price action is closing in on its descending resistance.
SAND’s long-term price action has been restricted within a descending price channel underscored by support and resistance. An interaction with the resistance line is thus expected to yield some downside unless there is a breakout. In SAND’s case, the price might have to drop its current floor in favor of more downside in the next few days.
Testing the strength of SAND’s current price floor
The outcome of SAND’s price action will ultimately depend on whether its current price floor is built on a strong foundation. The price has barely achieved much downside or upside amid changes in key metrics. For example, its market cap registered a notable uptick in tandem with a volume increase. However, the supply held by whales registered outflows in the last two days.
SAND’s price action barely registered any significant downside to reflect the outflows from whale addresses. SAND’s supply dynamics also reveal a similar observation. For example, the balance on addresses holding between one million and 10 million grew from 4.42% to 4.4% from 1 June to 7 June, though dropped slightly in the last 24 hours of 8 June.
The balance on addresses holding more than 10 million decreased slightly from 90.64% to 90.27% during the same period. However, it bounced to 90.55% in the last 24 hours of 8 June. None of those changes triggered any significant price changes.
Dropping out of range
The lack of any significant price changes despite the changes in SAND’s supply distribution can be considered a sign of a strong floor. If the floor price continues to hold strong, then SAND’s lateral price action might break through the resistance line and continue on its sideways action. This is assuming that the market will retain its current range without any intervention from potential catalysts or black swans.
Although a lateral break-out is possible, it is also worth noting the other possibilities. SAND can still break through its current floor price if the markets get spoofed. The other possibility is a return of healthy volatility, resulting in a range breakout. SAND will eventually have to face one of these possibilities.