Sandbox (SAND) price manages to reverse the previous two session’s low but with limited gains. The current price action suggests some consolidation before trending in a clear direction. Sandbox price faces strong resistance near $5.0.
- Sandbox price books modest gains on Friday.
- The price trades in the descending channel with a 30% downside risk.
- SAND slips below the 50-day Simple Moving Average at $4.73.
In a recent development, the Competition and Markets Authority (CMA) has announced a deal from Google to address competition concerns over the company’s Privacy Sandbox. Google is to seek out a way to replace third-party cookies with Privacy Sandbox.
Further, Gucci, the luxury fashion brand announced its official entry into metaverse by purchasing a virtual plot of land on the Sandbox.
SAND price set for a corrective pullback!
On the daily chart, the SANDBOX (SAND) price has rallied more than 40% in the previous five sessions. The price rose from the lows made in January at $2.56. After last month’s bloodbath, the price hit the highs on February 7 after that altcoin has been consolidated near the same level.
SAND has been moving in a downside channel since December 26 with the classic lower high lower low formation. Bulls have taken control from the lows of $2.56, a resurgence of buyers around this level seems reasonable.
The price has crossed above the 21-day Simple Moving Average (SMA) but faces a double hurdle at the 50-day SMA and the bearish slopping line. A spike in descent price movement could trigger a fresh round of selling toward the lower trend line of the channel.
The immediate support is placed at a $2.50 horizontal support level, which also forms the double support formation.
On the other hand, a bullish breakout of the downside channel could push investors to take out the psychological $6.0 level.
Technical indicators:
RSI: The Relative Strength Index (RSI) trades at 50 just above the moving average line.
MACD: The Moving Average Convergence Divergence (MACD) just breached the midline with a bullish crossover.
