Cryptocurrency

SAND traders should follow this course of action to avoid losses

The patrons have lastly clinched a string of greater troughs for over two weeks for the primary time in two months on the 4-hour timeframe. Meanwhile, SAND shunned excessive volatility because it hovered close to the Point of Control (POC, purple) in its excessive liquidity zone.

Now, because the market gamers may goal to break the tight part, the SAND’s chart had fairly a couple of issues in retailer for the approaching instances.

Any drop beneath the decrease trendline of the broadening wedge would place the alt for a near-term setback earlier than a bullish comeback. At press time, SAND traded at $1.2743, down by 1.76% within the final 24 hours.

SAND 4-hour Chart

Source: TradingView, SAND/USDT

In the wake of broader market liquidations, SAND sellers discovered renewed thrust from its mid-April highs. On its southbound journey, the trendline resistance (now assist, white/dashed) stood as an necessary space of worth.

A virtually 61.3% drop (from 5 May) pulled the coin towards its six-month low on 12 May. Since selecting itself from the $1.13 baseline, the altcoin curbed its volatility and transposed in a two-week compression. Meanwhile, the patrons struggled to discover a sustainable shut past the 20 EMA (purple).

With an ascending broadening wedge setup, the patrons lastly managed to flip the trendline resistance to assist. But with the 20 EMA refusing to take a bullish crossover with the 50 EMA (cyan), the patrons would possible face a troublesome time pulling off a development modifying rally.

A possible break beneath the wedge could lead on SAND to take a look at the $1.18-zone earlier than the patrons step in to provoke a rally. A bounce again from this degree may doubtlessly function an entry set off.

Rationale

SAND traders should follow this course of action to avoid

Source: TradingView, SAND/USDT

The Relative Strength Index indicated that sellers have a slight edge within the present construction. But the bullish divergence on the OBV saved a near-term bullish comeback hope alive.

To break the chains of 23.6% and break the squeeze part, the CMF nonetheless wanted to discover a shut past the zero-line to maintain a rally.

Conclusion

The present setup was fairly fragile for SAND. Should the sellers proceed to press extra, any shut beneath the wedge could lead on the alt to lose 6-7% of its worth towards the $1.18-zone. 

However, with the OBV chalking out a bullish divergence on the 4-hour timeframe, a right away restoration above the prevailing down-channel may lengthen the squeeze part earlier than a trend-altering transfer.

Finally, the alt shares a staggering 97% 30-day correlation with the king coin. Hence, keeping track of Bitcoin’s motion could be important to complement these technical elements.

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