The Sandbox: SAND could rise to $4 before correction sets in

Gaming tokens akin to Axie Infinity’s AXS and Enjin Coin have registered phenomenal hikes lately as buyers have fancied the burgeoning reputation of NFT’s. In actual fact, AXS sits as the very best gainer of 2021 up to now, with a flabbergasting year-to-date surge of 23,554%. As crypto fans proceed to journey the NFT bandwagon, The Sandbox has emerged one among its largest beneficiaries.

Because of this, its native cryptocurrency, SAND, has loved year-to-date positive factors of seven,100%.  The platform permits customers to create, personal and monetize their gaming experiences of the Ethereum Blockchain. Additionally it is owned in majority by Hong Kong primarily based gaming developer Animoca Manufacturers, famend for its online game choices on IOS and Android. On the time of writing, SAND traded at $2,87, up by a 74% over the past 24 hours.

SAND 4-hour Chart

Supply: SAND/USD, TradingView

On the charts, a symmetrical triangle breakout was the set off for SAND’s newest worth hike. The worth broke above the higher trendline of 27 October after its triangle started formation almost two months in the past. Because the breakout, SAND surged by an extra 300% and tagged its  400% Fibonacci Extension at $3.24.

The subsequent targets lay on the 461.8% and 500% Fibonacci Extensions at $3.72 and $4, respectively. Ought to profit-taking turn into a risk, the 300% Fibonacci Extension might present aid earlier than the subsequent upswing. A deeper sell-off could be countered on the 161.8% Fibonacci Extension, which has already countered a 42% decline noticed on 31 October.

In the meantime, no divergences have been noticed on the 4-hour RSI and MACD, which stored up their greater peaks in tandem with SAND’s worth motion. This was certainty a optimistic signal. Larger highs alongside the Superior Oscillator was additionally encouraging for bullish merchants. Nevertheless, ought to the RSI fall wanting its earlier peak, overbought readings might warrant a correction.

Conclusion 

SAND wanted to register one other 23% surge to tag its 500% Fibonacci Extension stage. Contemplating the large inflows seen of-late, SAND might obtain this feat with out fears of an impeding correction. Nevertheless, a detailed eye have to be maintained on its RSI, which had fashioned a number of peaks in overbought territory.

A sell-off could be countered instantly on the 300% Fibonacci stage, whereas a stronger response would demand the 161.8% Fibonacci stage to step up as soon as once more.