Technical analysis
1. Downtrend:
o The chart shows that the price of SAND is in a downtrend, forming a falling wedge pattern. This formation is usually bullish and can indicate a potential reversal to the upside if the upper line of the wedge is broken.
o The price is currently trading around $0.2480 and there are signs that it is approaching a possible breakout point from the wedge.
o The price is below all moving averages (EMA 20, 50, 100 and 200), which also confirms the bearish trend. To confirm the reversal, the price needs to break at least EMA 20 and then EMA 50.
2. Trading volumes:
o Increasing volumes on the last decline indicate active selling, but it could also signal the end of the downward momentum, especially if volumes begin to rise against the backdrop of rising prices.
Support and resistance levels
Support levels:
• $0.2100 is the nearest key support that may hold back further decline.
• $0.1820 - lower support level in case of increased bearish pressure.
Resistance levels:
• $0.2743 - the nearest resistance level, located near the upper border of the wedge and moving averages.
• $0.3220 - higher resistance level achievable with strong bullish momentum after the breakout.
Potential scenarios
1. Bullish scenario:
o If the upper line of the descending wedge is broken and consolidated above $0.2743, further growth to the levels of $0.3220 and $0.3600 can be expected. This will be accompanied by the RSI exiting the oversold zone and an increase in volumes.
2. Bearish scenario:
o If the price fails to break through the resistance at $0.2743, a pullback to $0.2100 and $0.1820 is possible. This may be accompanied by a further drop in volumes and increased bearish pressure.
Summary
SAND/USDT price is at an important support level inside a descending wedge. A break to the upside could signal a reversal and start a new upward momentum, but the lack of confirmation will lead to further declines.
