TRUE end analysis: the journey through the desert continues

If you follow the crypto and NFT ecosystem regularly, you should have heard of Sandboxes. The end of 2021 was extremely profitable for their token with an increase of 1352% over two months. Its price rose from $ 0.58 in late September to almost $ 8.50 on November 25th. But since that high, the Metaverse giant’s assets have fallen by -71%. So what about the closure of SAND tonight? Does it show hope for a trend change?

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Towards a close that will confirm the downtrend of TRUE

To fully understand the current downward trend, you need to realize how pure it is. In fact, we can see that since ATH, SAND has broken and retested all the levels that have served as support so far in an almost academic way. Each support has been transferred to resistance thanks to a bearish retreat worthy of examples from charting books.

TRUE price against dollar (D1)
TRUE price against dollar (1D)

But I have a problem with the candles the last few days. If we look at the candle from the day before yesterday, we will see that SAND has not closed so low since 11 November 2021. The asset in The Sandbox thus breaks the support that has been going on for almost a month and a half now. If SAND continues to be so academic and closes at this level, it is obvious that it will turn this last support into resistance over the next few days.

A resistance already present? A crucial closure underway

If we zoom in on the H4 time unit, we see something interesting. In fact, during the outbreak of the last support, a bearish withdrawal has already taken place. Thus, the validation of the support starts in resistance. And while another rejection would certainly mean new resistance, SAND already looks set to start going lower and heading toward the next $ 2.26 support.

TRUE price against dollar (H4)
TRUE price against dollar (H4)

Note that after trying to go back over the last support, SAND suffered a 11% drop in 20 hours. In addition, we see the outbreak of another small support for $ 2.57, which was also retested as resistance several times between yesterday and today. Finally, in the same period we can see the formation of a double peak (M-structure). At the time of writing, we are ready to close under the neckline on this double top. But we will see it better in H1.

The eruption of a validated double top, TRUE on its way to its next support

This double top is more visible on a two-hour time scale, but is still understandable as such. And this shows us one thing: We have already made a fence below the neckline of the structure. This would cause a drop that is already underway at the time of writing. The exercise is actually not easy on such marked declines as the asset validates bearish structure on bearish structure. Currently, SAND is breaking an H1 support to $ 2.46, which will announce the drop to the next support.

TRUE price against dollar (H1)
TRUE price against dollar (H1)

So what about tonight’s closing in a few hours? Honestly, it is very likely that SAND will very soon seek the next big support for $ 2.26. I would almost say it’s a matter of hours. But a withdrawal of the H1 support to $ 2.46 would still be very likely. A clean break of $ 2.46 tonight would still provide a test of support at $ 2.26 very quickly.

It seems obvious that tonight’s closing does not bode well for the price of SAND. By making the lowest closing since November 11, the asset in The Sandbox shows real buying weakness. The closure of SAND tonight will certainly lead to a genetic test of the support mentioned above. This last support must definitely last. SAND has seen a sharp increase and the next one will be held at $ 1.55, which is 32% below current support. But we must not forget who is behind the asset. Sandkassen recently announced a fundraising of $ 400 million. Despite a difficult ending this evening, it seems that SAND still has a bright future ahead of it.

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