- In recent market movements, SAND found robust support as bulls are keen to initiate a breakout above its prevailing pattern.
- Despite derivatives data indicating a bearish trend, there remains potential for a bullish resurgence.
- SAND’s price action has been challenged by bears, striving to maintain critical support levels as it rebounds from the 50 EMA.
Delve into market dynamics and explore whether SAND can overcome bearish pressure to establish a bullish trajectory.
Key Support Levels and Bullish Ambitions
SAND’s recent attempts to revive its market position encountered strong resistance, yet the bulls remain undeterred. After a notable rebound from its 50 EMA, the price action steered towards the $0.23 support area. As of now, SAND is trading around $0.24, marking a 5% increase over the last 24 hours. This movement illustrates the potential for bulls to dismantle the bearish dominance, leveraging the high liquidity zone currently in focus.
Evaluating Market Sentiments and Indicators
Price trends indicate that SAND bears gained traction following a retracement from the 200-day EMA in early June. The ensuing decline below the 20-day and 50-day EMAs underscores a formidable bearish influence. The 200-day EMA has been a significant resistance point, amplifying bearish pressures. Nevertheless, the $0.23 support level has reignited bullish sentiment, catalyzing a possible resurgence.
In its daily chart, SAND managed to surpass its long-term trendline resistance, transforming it into a support level. Additionally, the formation of a falling wedge pattern signifies a preparatory phase for a bullish breakout, particularly as the altcoin rebounds from the $0.23 support level. Should the bulls achieve a decisive close above this pattern, SAND could aim for resistance in the $0.28-$0.31 range before facing potential reversals.
Market Indicators and Derivatives Data
Analyzing derivatives data, the long/short ratio stands at 0.9869, slightly favoring short positions. However, on Binance, top traders show a long/short ratio of 2.6873, indicating a significant inclination towards long positions. Despite an overall marginal short bias, other indicators such as account ratios, top trader stances, Funding Rates, and liquidations point towards a bullish market sentiment. The heightened market interest, evident from increased volume and Open Interest, could spur further price movements for SAND.
Conclusion
In summary, SAND’s current market dynamics present a crucial juncture. The bullish efforts to breach the prevailing bearish edge are supported by strong indications from technical patterns and market indicators. Investors should remain vigilant of potential bullish crossovers on the MACD lines, as these could signal reduced selling pressures and pave the way for SAND to retest its near-term EMAs. Ultimately, while cautious optimism prevails, continuous monitoring of the market trends remains essential.
