What you need to know:
- The Sandbox (SAND) tests the lower limit of a falling wedge, indicating a possible bullish reversal.
- Bullish divergence signals on the RSI suggest that sellers are losing momentum, increasing the likelihood of a trend reversal.
- A breakout from the falling wedge could push $SAND towards targets of $0.13, $0.22, $0.40, $0.90, $1.45, and ultimately $2.65.
The Sandbox (SAND) will test the lower limit of a falling wedge on the weekly time frame on Thursday, February 12, signaling a possible bullish reversal.
According to According to crypto analyst Jonathan Carter, the price has managed to stay above crucial support, indicating that the market’s momentum may be shifting. This support zone remains vital in determining the future direction of the token.
There are signs of bullish divergence on the momentum indicators, such as the Relative Strength Index (RSI). While the price continues to trend downward, the momentum continues to improve, meaning the sellers are weakening.
This is usually a sign of the beginning of a reversal, meaning there is a higher chance of a breakout from the wedge.
Also Read: Sandbox (SAND) Rally Strengthens: Key Breakout Signals Potential to $0.22
SAND Falling Wedge Breakout Objectives $2.65
The falling wedge represents a quiet period of consolidation, which normally culminates in an upside breakout. As long as the price remains within the wedge, an upward move is still likely.
This accumulation phase sets the stage for a strong advance once the pattern is complete and the price breaks through resistance.
Source: Jonathan Carter X post
In the event of a breakout, there are several price targets to take into account. The price can rise to $0.13, $0.22, $0.40, $0.90, $1.45 and even $2.65.
The long-term investors who exercise patience during the consolidation phase can benefit immensely if the asset continues to trend upward.
Technical outlook points to waning bearish strength
According to TradingView, as of Thursday, February 12, the price has dropped from February 5 to February 12. The token is currently trading below its 20-period simple moving average, which is showing bearish momentum.
The Bollinger Bands indicate a possible consolidation in the price, which is trading within a narrow range. The current price is $0.08800, which is close to the middle band at $0.08394.
Source: Trading view
However, the MACD indicator sends mixed signals. The MACD line is just below the signal line, indicating a weak bearish trend. The histogram is mostly in red, indicating a sell signal.
But the space between the MACD line and the signal line is narrowing, and if the price can break through the resistance levels, it could be a sign of a potential bull run.
Also Read: Sandbox (SAND) Tests Key Support Zone After Extended 99% Decline
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