SAND Technical Analysis: Will SAND Prices Overtake The 100-Day SMA?

Key Technical Points:

Past Performance of SAND

As warned in our previous analysis, the SAND prices fail to exceed the overhead resistance of $1.45, leading to a bearish retracement to the 50-day SMA. Currently, the price movement is within the consolidation range but faces opposition from the 100 SMA, resulting in multiple higher price rejection candles. Moreover, the bear cycle within the range approaches the 50-day SMA while the price action inchoates a double top pattern.

Source - Tradingview

SAND Technical Analysis

The SAND price action shows a bearish candle approaching the 50 SMA after reversing from the 100 SMA. The increase in selling momentum projects a high likelihood of a bearish breakout of the consolidation between the SMAs.

Despite the consolidation, the bullish influence grows over the 50 SMA, resulting in a positive reversal. Hence the likelihood of a bullish crossover with the 100 SMA breakout increases significantly.

The RSI slope shows a declining trend in the nearly overbought zone, reflecting a bearish divergence from the price trend. Moreover, the 14-day average line provides opposition to keep the bullish growth in check, increasing the likelihood of potential fallout.

The MACD indicator shows the fast and slow lines maintaining a downward spiral as the negative histograms intensify. Hence, the technical indicators project a high likelihood of a price drop below the 50 SMA.

In a nutshell, the SAND technical analysis takes a negative standpoint on the upcoming trend due to increased selling pressure.

Upcoming Trend

If the selling pressure sustains over the day, the SAND prices will fall below the supporting SMA and test the psychological mark of $1. However, if the support trendline (marked in the daily chart) manages to propel the prices above the 100 SMA, the bull run will potentially cross the $1.50 mark.

Resistance Levels: $1.45 and $2

Support Levels: $1.20 and $1