The Sandbox (SAND) is testing the lower boundary of a falling wedge on the weekly timeframe on Thursday, February 12, signaling a potential bullish reversal.
According to the crypto analyst Jonathan Carter, the price has managed to stay above crucial support, which indicates that the market’s momentum may be shifting. This support zone remains vital for determining the token’s future direction.
There is a sign of bullish divergence on the momentum indicators, such as the Relative Strength Index (RSI). While the price continues to trend lower, the momentum continues to improve, which means the sellers are weakening.
This is usually a sign of the start of a reversal, which means there is a higher probability of a breakout from the wedge.
Also Read: Sandbox (SAND) Rally Strengthens: Key Breakout Signals Potential to $0.22
SAND Falling Wedge Breakout Targets $2.65
The falling wedge represents a quiet period of consolidation, which normally culminates in an upside breakout. So long as the price is contained within the wedge, an upside move is still likely.
This accumulation phase is preparing the way for a strong advance once the pattern is complete and the price gets through the resistance.
Source: Jonathan Carter X Post
In the event of a breakout, there are various price targets to be considered. 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 greatly if the asset continues to follow an upward trend.
Technical Outlook Points to Decreasing Bearish Strength
According to TradingView, as of Thursday, February 12, the price has been moving down from February 5th to 12th. The token is currently trading below the 20-period simple moving average, which shows bearish momentum.
The Bollinger Bands indicate a possible consolidation of the price, which is trading in a narrow range. Its current price is $0.08800, which is close to the middle band at $0.08394.
Source: TradingView
However, the MACD indicator is sending mixed signals. The MACD line is just below the signal line, indicating a weak bearish trend. The histogram is mostly in the red, indicating a sell signal.
But the space between the MACD line and the signal line is decreasing, and if the price can breach the resistance levels, it could be a sign of a potential bull run.
Also Read: Sandbox (SAND) Tests Key Support Zone After Prolonged 99% Decline