The Sandbox Price Prediction: Anticipated dip to $5.7 can be a lucrative buy opportunity

Metaverse gaming platform, The Sandbox continues has seen a parabolic rise in 2021. In fact, The Sandbox is the fourth best performing crypto in the year so far, with year-to-date gains of nearly 20,000%. From Snoop Dogg and Deadmau5 to PWC Hong Kong, participants from every field seem to want a piece of the pie.

Now, the last 3 days alone have seen SAND spike in value by 40%. However, overbought readings on the RSI and Bollinger Bands carried some near-term threats. Should the price pare gains over the next 48 hours, investors can grab SAND at attractive price levels before the next leg forward. At the time of writing, SAND traded at $6.8, up by 8% over the last 24 hours.

The Sandbox 4-hour time frame

A symmetrical triangle breakout spurred SAND’s latest rally as the price flipped a sloping resistance trendline for the first time in a month. Immediate goals now lay at 3 December’s swing high at $7.1 and 29 November’s swing high at $8.0, after which $8.50 can be targeted.

Moreover, short-sellers have little to no incentive to bet against the market since SAND traded comfortably above its 20 (red), 50 (yellow) and 200 (green) Simple Moving Average Lines. Generally speaking, an asset is considered to be within an uptrend once the candles trade above these SMA’s. Having said that, SAND was not immune to a minor correction. General weakness in the broader market could amplify some warning signs on SAND’s indicators and trigger a minor sell-off.

Indicators

The 4-hour RSI formed a bearish divergence with respect to SAND’s price action and traded in the overbought zone. One of these signals is usually enough to trigger some selling behavior. Secondly, the candles were dangerously close to the upper band of their Bollinger Bands. The Bands, which measure market volatility, prompt stabilization once the asset trades on the upper or lower end.

Conclusion

Considering the abovementioned factors, it was doubtful whether SAND would clear $7.1 resistance over the next 48 hours. An expected retracement would highlight $6.2 and $5.72 supports, both of which can be used as entry levels for traders.

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