Sandbox price sets triple top as SAND prepares to crash
|- Sandbox price has erected three swing highs along the $5.64 barrier, hinting at a triple top setup.
- If SAND breaches through the $4.76 support floor, it will likely retest $3.88, constituting a 25% crash.
- A higher high above $6.07 will invalidate the bullish thesis, indicating the bulls are back for more.
Sandbox price has been stuck moving sideways between two vital levels for roughly a week now. This consolidation indicates that neither bulls nor bears are willing or able to move SAND in either direction. There is a greater chance of a move lower due to the bearish setup.
Sandbox price eyes lower lows
Sandbox price recovery after the December 4 crash was impressive as it rallied 50% from the swing low at $4.12. After that SAND stalled, lacking momentum from either bullish or bearish camps, and this resulted in a sideways movement between $4.76 and $5.64.
During this consolidation, Sandbox price set up three equal highs around $5.64, resulting in the triple top setup. This technical formation hints that the bears are going to take control eventually and push price lower after buyers’ three failed attempts to extend the rally.
So far, SAND has dropped 8% from the third swing high and the pattern dimensions indicate that it is eventually going to retest the $4.76 support floor. Investors can position themselves short at the current position or wait for a swing high to form around $5.27.
While risky, there is a chance Sandbox price could sweep the $5.64 barrier, which would provide a much better chance to enter a short position.
Regardless, a breakdown of the $4.76 foothold will trigger an 18% crash to the December 4 swing low at $4.12, followed by $3.88. In total, this downswing would constitute a 25% nosedive from the current position - $5.13.
SAND/USDT 4-hour chart
On the other hand, if Sandbox price produces a higher high above $6.07, it will invalidate the bullish thesis. Market participants could set up their stop-loss just above this level. This development could see SAND climbing higher to retest the $6.75 resistance barrier.
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