Although the price of BTC has not been showing signs of recovery in the short term, analysts believe that the metaverse token SAND, from the game The Sandbox, has a good chance of rising.
As pointed out by the analyst and trader Sarah Tran, the SAND price may have established a local bottom on January 10th. Furthermore, a key technical indicator suggests that the token is ready for a bullish reversal.
“While there may be several hurdles ahead, the token could mark the upper bound of the ruling chart pattern at $5.90, resulting in a 30% rally,” she said.
According to her, the price of the SAND formed a symmetrical triangle pattern on the daily chart. Recently, the crypto asset has found reliable support at the lower end of the governing technical standard.
The analyst pointed out that the Reversal Momentum Indicator (MRI) also displayed a bottoming signal on the Jan 11 candle, suggesting that a rally may be in the offing.
But Tran noted that the SAND price will face its first hurdle at the 23.6% Fibonacci retracement level at $4.85. Then at the 38.2% Fibonacci retracement level at $5.25.
“Additional resistance could emerge at $5.57 where the 50% retracement level and the 21-day simple moving average (SMA) intersect. The SAND price may also face a headwind on the 50-day SMA at $5.69,” he said.
According to the analyst, only if the SAND price manages to overcome the aforementioned obstacles will the token mark the upper limit of the ruling technical pattern at $5.90, coinciding with the 61.8% Fibonacci retracement level and the 61.8% Fibonacci retracement level. resistance line provided by MRI.
“If a spike in buy orders occurs, pushing the SAND price above the upper bound of the triangle and breaking above the 78.6% Fibonacci retracement level at $6.36, a further 51% rally towards at US$ 9.03 it may be on the radar, derived from the ascending target of the technical standard that governs”, he points out.
Finally, she highlighted that if selling pressure builds, the SAND price could drop to mark the lower boundary of the triangle at $4.24 as immediate support.
“However, if SAND drops below that line of defense, the token could collapse further to $3.78, the 100-day SMA and the low of November 22nd.”