Sandbox (SAND) Approaches Critical Support After Extended Price Correction

Key Takeaways

• Descending wedge breakout approaching.
• Critical support at $0.30-$0.22 region.
• Fibonacci retracement at $0.50 resistance.

The Sandbox (SAND) is currently at a critical juncture, with price action showing potential signs of a reversal after a prolonged correction.

The higher time frame analysis (daily chart) suggests the asset is testing a major support zone.

In contrast, the lower time frame analysis (1-hour chart) provides insights into possible short-term movements based on Elliott Wave patterns and Fibonacci levels.

SAND Price Analysis

SAND has been in a persistent downtrend since reaching its all-time high of $8.50 in November 2021, with price action forming a major corrective structure.

The daily log chart highlights a crucial support zone in the $0.30-$0.22 range, which has historically provided strong buying interest.

Price action is hovering near this region, indicating a possible inflection point.

On Dec. 4, SAND reached another horizontal resistance of around $1 and decreased again. This came after a period of consolidation inside the key horizontal zone. The Relative Strength Index (RSI) remains near oversold territory, suggesting selling pressure may be losing steam.

If this level holds, a breakout from the wedge could ignite a recovery rally. However, a breakdown below $0.22 would invalidate the bullish case and open the door for further downside.

SAND Price Prediction

Looking at the 1-hour chart, SAND appears to be in the final stages of an Elliott Wave correction. The descending wedge pattern is narrowing, and the price is currently trading near key support within the $0.30-$0.22 zone.

Completing the C wave suggests a possible Wave D bounce toward resistance at $0.50 (0.5 Fibonacci level) before a final leg down toward the $0.22 support.

A bullish scenario would see SAND breaking out of the wedge structure, targeting immediate resistance at $0.40 (0.786 Fibonacci retracement) before pushing toward $0.50-$0.63.

A breakout from this zone would likely confirm the start of a new impulsive wave, with the next major target at $0.85.

However, a bearish continuation remains possible if SAND exceeds the support range of $0.30-$0.25.

In this case, a final Wave E could lower the price toward the $0.22-$0.20 region, aligning with the full Fibonacci retracement of the previous rally.

The RSI on the 1-hour chart is currently in a neutral zone but slightly tilting towards oversold levels, supporting the possibility of a short-term bounce.

If volume confirms a breakout above the $0.40-$0.50 resistance zone, it could indicate that bullish momentum is returning.

Key Levels to Watch

• Immediate Resistance: $0.40 (0.786 Fibonacci retracement).
• Key Resistance: $0.50 (0.5 Fibonacci retracement).
• Major Resistance: $0.63 (0.382 Fibonacci retracement).
• Immediate Support: $0.30 (local demand zone).
• Key Support: $0.25 (historical support).
• Critical Support: $0.22 (1.0 Fibonacci retracement).
• Breakout Target: $0.85 (0.236 Fibonacci retracement).

A confirmed breakout above $0.50-$0.63 would indicate the end of the correction and the start of a new uptrend.

Conversely, a drop below $0.22 would invalidate the bullish outlook and suggest a deeper retracement.