Under the influence of the cup and bight pattern, SAND price offered a 20% downside opportunity from the $1.28 resistance, which dipped to the returned support of 1 $. Sustained buying could break through the support at $1.28, providing an attractive recovery opportunity.
Key points :
- The break in shape cut and handle could drive up the price of SAND by 20%.
- The middle line of the Bollinger Band indicator has turned into viable support.
- The intraday trading volume of the SAND price is $341 million, indicating a 132% upside.
SAND price made a bullish reversal from the $0.68 support level in mid-June after a bearish dip below the $1 mark. The reversal rally results in a rounded bottom setup above the $1 mark.
However, SAND bulls failed to sustain buying pressure, leading to a bearish retracement from the 50-day SMA and a retest of the breakout at $1.
The current series of candles doji shaped is a bullish reversal that completes a cup and handle formation. However, the lack of bullish support evident by the downward trend in trading volume warns of a bullish failure.
If the buyers manage to complete the formation of the pattern, the market price will break above the 50-day SMA on the bullish breakout, potentially breaking above the $1.50 mark.
Conversely, the bullish failure to break above the 50-day SMA will cause the fall of the psychological mark of $1, where traders can expect the falling rally to reach the lower support of $0.68.
Bollinger Band Indicator : On June 24, the SAND broke the middle line of the indicator, indicating that the buyers have wrested control of the trend from the sellers. Moreover, this neutral line aligned with the psychological support of $1 supported the bullish recovery.
OBV indicator : a significant rise in the slope of the OBV in response to the recent price jump, accentuating a real recovery rally.
- Resistance levels – $1.2 and $1.53.
- Support levels – $0.98 and 0.79.3