This crucial barrier can dictate an uptrend

For the majority of December, The Sandbox has traded between two price levels as neither bulls nor bears have remained dominant. The formation of a symmetrical triangle now indicates an incoming swing in either direction although bears do hold a slight edge. Meanwhile, bulls would hope that SAND shrugs off a major bearish divergence set up on the RSI and tackle key swing highs to get its price rolling. At the time of writing, SAND traded at $5.15, up by 0.5% over the last 24 hours.

The Sandbox 4-hour time frame

Since registering an ATH at $8.5 in November, SAND has been on a consistent downtrend. An upper sloping trendline charted a near 50 descent from the top and posed as resistance. In fact, this trendline combined with the upper boundary of SAND’s symmetrical triangle formed a crucial resistance barrier between $5.28-$5.37. Once sell pressure is overcome at the aforementioned zone, SAND can set up an immediate 8% hike to 7 December’s swing high at $5.73. From there on, SAND would require help from a broader market resurgence to tackle sellers at $5.73. This would lay the initial foundation for a fresh uptrend.

Conversely, any moves below $4.73 support would invalidate these bullish predictions. A breakout in the opposite direction would call support levels of $4.11 and $3.78 into action.

Indicators

Unfortunately, SAND’s lower highs as opposed to the RSI’s higher highs set up a massive bearish divergence. This indicated that the price trend is actually weakening and set up a potential sell-off. The Awesome Oscillator’s bullish-neutral nature did little to turn heads.

Conclusion

Considering the abovementioned indicators, SAND’s symmetrical triangle was given a bearish preference. Chances of a 20% sell-off were greater than an upswing, especially considering recent weaknesses in the broader market. Hence, a safer bet would be to stay put till the price clears a crucial resistance barrier. Traders can go long once SAND closes above $5.37 on strong volumes. If SAND manages to scale beyond $6.22 on the back of an uptrend, new ATH’s certainly on the table.