Evaluating SAND’s short-term reversal potential amidst market uncertainty

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Amidst increased market uncertainty, bears fast-tracked the depreciation of The Sandbox [SAND] on the four-hour timeframe chart. However, the bearish efforts were subdued slightly at $0.5042 support forcing SAND into a consolidation range. 

Read The Sandbox [SAND] Price Prediction 2023-24

A possibility of reversal could be imminent if the bulls continue to defend the $0.5042 support. It could boost their efforts to breach the descending line and the 20-period EMA. At the time of writing, SAND was trading at $0.5266.

Source: SAND/USDT on TradingView

SAND managed to inflict a rally in mid-February, but the price rejection at $0.8917 invited bears into the market. The bearish 20 EMA crossover with 50/100 EMA on February 25 induced further intense selling sinking the gaming coin below $0.6012 as the price action toiled below the descending line (white). 

At press time, the $0.5082 support had proved steady. The price action oscillated in the $0.5082 – $0.5408 range. A convincing close above $0.54 and the descending line could set SAND on a recovery path. The continued recovery efforts could face headwinds at $0.57 – $0.60 before a likely reversal. 

However, should sellers continue to subdue bulls from any recovery, SAND could sink below $0.5082 and attract aggressive selling afterward. The first key support area in an extended drop is the $0.488 – $0.453 range.  

The Relative Strength Index (RSI) recovered from the oversold territory, highlighting easing selling pressure. Similarly, the OBV exhibited an uptick, highlighting bulls’ hope for a reversal chance. 

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