Hello Traders,
Before we start to discuss, I'll be so glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it!
- Checking our 1D time chart frame we can see that SAND is in bearish mode that began in November 2021, price action has responded to a descending trendline and tumbled 75.4% from the All-Time High of $8.44. The traders are
actively selling at this upper trendline, restricting any significant bull run.
-On the other hand, the buyers had defended the $2.6 support since last quarter, preventing any excessive loss. Thus, the price action got sandwiched between the descending trendline and stiff support, yet buyers failed to hold this
important support level and the price went down to psychological support 2$ , moreover on April 30th the sellers managed a daily candle closing below the $2 support, suggesting another leg down. However, this breakdown was not
that significant, and the price jumped above $2 soon after. The $2 support is an important support level ( demand zone ) as well acting as an psychological support .
- I suggest 2 scenarios :
- Bullish scenario : Buyers will try to push the price again to S/R $2.6 , breaking this level will give us a sign that buyers trying to take control and will push the price higher in order to break the descending trendline which it will be our
trigger for bullish reversal uptrend
- Bearish Scenario : In attempt for a pullback , buyers are facing a stiff S/R $2.6 and 20 EMA acting as dynamic resistance to this price which will cause the price to dip again to level support $2 then price would accumulate for a certain
time or even price can continue its downward move to level support $1.11 .
Until now SAND is still trading in bearish mode until a new confirmation from buyers , will be watching 1D candle close above this level support $2 to take an idea where the next move would take in
Good Luck Traders!
Trade closed: target reached