SAND recently experienced a substantial three-digit surge, reaching a peak of $0.93 on December 4, marking its highest level in two years. This significant movement propelled the token well beyond its 20/50/200-day EMAs, strengthening its positive outlook in the short and medium term.
Nevertheless, the recent surge has placed SAND in a critical position, with indicators suggesting overbought conditions and the possibility of a period of consolidation ahead.
SAND Demonstrates a Robust Recovery Above Key Support Levels
The price action of SAND successfully broke through major resistance levels, gaining momentum as it reclaimed its position above the 20-day EMA and 50-day EMA. This surge enabled SAND to surpass the psychological support level of $0.7 and challenge the immediate resistance in the range of $0.93 to $1.
Currently, SAND is trading around $0.86 following a slight decline of nearly 5% in the last 24 hours. This pullback coincided with the RSI entering overbought territory, indicating a potential slowdown or consolidation phase. To prevent further downside, buyers must defend the $0.7 level, which also aligns with significant liquidity.
If the bullish momentum persists, a bounce from $0.7 could propel SAND to retest $0.93 and potentially break through to $1.1 – a crucial resistance level. A convincing close above this mark could reignite the rally, pushing SAND towards the $1.4 region.
Conversely, a bearish trend in BTC might cause SAND to slide below $0.7. In such a scenario, the next vital support level to watch is around $0.52, aligned with the 50-day EMA.
The current MACD indicator indicates strong bullish momentum, as the MACD line remains comfortably above the Signal line in positive territory. However, a potential bearish crossover or convergence of these lines could indicate a reduction in buying pressure.
Moreover, the RSI reaching overbought levels suggests a likelihood of short-term consolidation. Traders should pay close attention to this indicator, as any reversal below 60 could weaken the bullish sentiment.
Insights from Derivatives Data
The trading volume for SAND declined by 11.60% to $637.84 million, indicating reduced participation after the recent rally. Additionally, Open Interest (OI) dropped by 8.31% to $220.11 million, reflecting a cautious stance among traders.
It is notable that the 24-hour long/short ratio stands at 0.8657, favoring short positions. However, prominent exchanges such as Binance and OKX display strong long biases, with ratios of 3.53 and 2.78, respectively.
Traders are advised to look for a clear breakout above $0.93 and monitor Bitcoin’s price action for broader market signals.