The broader cryptocurrency market is exhibiting a cautious sentiment as traders await the Federal Reserve's policy meeting, with a potential interest rate cut remaining a central focus. Both Bitcoin (BTC) and Ethereum (ETH) are experiencing slight declines, mirroring a mild weakness observed across major altcoins, including The Sandbox (SAND).
Despite a modest dip in SAND's price today, the latest chart formation suggests that the token might be preparing for a significant directional move, provided it can maintain its crucial support level.
Holds Symmetrical Triangle Support
On the 4-hour chart, SAND has been consolidating within a symmetrical triangle pattern. This technical setup is known for being neutral, yet it often precedes a period of significant volatility and a decisive breakout.
Following an 8% rejection from the triangle's upper resistance zone, SAND experienced a pullback to retest its ascending support trendline, which is located near the $0.2057 mark. Buyers re-entered the market around this level, successfully defending the structure and prompting a rebound in price to approximately $0.2112, indicating early signs of resilience.
This ascending support trendline has consistently served as a dynamic demand zone since the market downturn on October 10th. It has effectively cushioned each pullback, thereby reinforcing the base of the current pattern.
What's Next for SAND?
If bullish momentum continues and buyers successfully defend the ascending support trendline, SAND could soon attempt to retest the triangle's upper boundary, which is currently positioned near $0.2180. A clear and decisive breakout above this resistance zone, followed by a successful retest, could pave the way for a significant trend expansion. The projected upside target for such a move is near $0.2653, a level that aligns with the measured move projection derived from the triangle formation and previous swing highs.
Conversely, if the price fails to maintain its position above the support level, SAND could face renewed selling pressure. This scenario might lead to a decline toward the lower boundary of the triangle before any subsequent breakout attempt can be considered.
For the time being, the technical structure remains intact, suggesting that the upcoming trading sessions will be critical in determining whether SAND experiences an upward breakout or remains confined within its current consolidation phase.