SAND traders should follow this course of action to avoid losses


The consumers have lastly clinched a string of upper troughs for over two weeks for the primary time in two months on the 4-hour timeframe. In the meantime, SAND kept away from excessive volatility because it hovered close to the Level of Management (POC, pink) in its excessive liquidity zone.

Now, because the market gamers may goal to interrupt the tight part, the SAND’s chart had fairly a couple of issues in retailer for the approaching occasions.

Any drop beneath the decrease trendline of the broadening wedge would place the alt for a near-term setback earlier than a bullish comeback. At press time, SAND traded at $1.2743, down by 1.76% within the final 24 hours.

SAND 4-hour Chart

Supply: TradingView, SAND/USDT

Within the wake of broader market liquidations, SAND sellers discovered renewed thrust from its mid-April highs. On its southbound journey, the trendline resistance (now assist, white/dashed) stood as an necessary space of worth.

A virtually 61.3% drop (from 5 Might) pulled the coin towards its six-month low on 12 Might. Since selecting itself from the $1.13 baseline, the altcoin curbed its volatility and transposed in a two-week compression. In the meantime, the consumers struggled to discover a sustainable shut past the 20 EMA (pink).

With an ascending broadening wedge setup, the consumers lastly managed to flip the trendline resistance to assist. However with the 20 EMA refusing to take a bullish crossover with the 50 EMA (cyan), the consumers would doubtless face a troublesome time pulling off a pattern modifying rally.

A possible break beneath the wedge could lead on SAND to check the $1.18-zone earlier than the consumers step in to impress a rally. A bounce again from this degree may probably function an entry set off.

Rationale

Supply: TradingView, SAND/USDT

The Relative Energy Index indicated that sellers have a slight edge within the present construction. However the bullish divergence on the OBV stored a near-term bullish comeback hope alive.

To interrupt the chains of 23.6% and break the squeeze part, the CMF nonetheless wanted to discover a shut past the zero-line to maintain a rally.

Conclusion

The present setup was fairly fragile for SAND. Ought to the sellers proceed to press extra, any shut beneath the wedge could lead on the alt to lose 6-7% of its worth towards the $1.18-zone. 

Nonetheless, with the OBV chalking out a bullish divergence on the 4-hour timeframe, a right away restoration above the prevailing down-channel may prolong the squeeze part earlier than a trend-altering transfer.

Lastly, the alt shares a staggering 97% 30-day correlation with the king coin. Therefore, maintaining a tally of Bitcoin’s motion could be important to enrich these technical elements.



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