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Sandbox failed a break out at $1.3 and has retraced to a support
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Price weakness emanates from the general crypto mood and lack of Sandbox developments
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SAND remains vulnerable unless potential price catalysts come up
Sandbox token SAND/USD looked likely to take new heights as the price hovered around $1.3. Price consolidated at the resistance level for weeks, but neither bulls nor bears seemed to win the battle. Since most other cryptocurrencies were surging, that gave hope that bulls would eventually triumph. Bears seem to have taken control as the price has dipped to $1.03. That is a potential demand zone but will buyers push the token higher?
Sandbox does not look promising at the current level. First, Sandbox has depended on the momentum of the crypto sector lately. The momentum is currently weak. Before the sentiment improves, SAND could weaken further. Secondly, projects building on the metaverse has slowed lately. Although a great opportunity exists for the metaverse sector, investors are interested in current developments. The lack of clear fundamentals from the metaverse sector could be a blow to the short-term recoveries of SAND.
Sandbox token slides to $1.03 support in a bear market
Source – TradingView
Technically, Sandbox is bearish. The momentum indicator shows that the price is extremely bearish at the key support of $1.03. No price action to show that the price is about to recover at the support. Consequently, SAND is vulnerable if momentum fails to improve quickly. Investors should not buy the token at the support but should watch price action and general sector mood. If SAND loses the $1.03 support, the token could slide to $0.85.
Summary
Sandbox token remains vulnerable at the $1.03 support. The lack of clear fundamentals and momentum is a catalyst for further bear weakness.