The cryptocurrency market is experiencing renewed bearish pressure, erasing the recovery gains seen earlier this week. Ethereum ($ETH ) has declined by over 6% in the last 24 hours, falling below the $1,900 mark, which has exacerbated selling momentum across major altcoins.
Amid this broader market downturn, Sandbox ($SAND ) has witnessed a sharp decline, losing over 8% in today’s trading session and extending its 90-day correction cycle to nearly three months of consecutive losses. However, despite the prevailing bearish sentiment, a key technical pattern is emerging that could signal a potential trend reversal in the near future.
Retesting the Falling Wedge Breakout
A critical development in SAND’s price structure is its retest of a falling wedge breakout—a bullish reversal pattern that has been forming for nearly two years. This pattern is defined by a downward-sloping resistance line and a converging support line, which compress the price into a tightening range. Historically, a breakout from this formation often marks the end of a prolonged downtrend and indicates a potential shift in market momentum.
Technical Analysis:
According to the weekly chart, SAND has been trading within this falling wedge since reaching its all-time high, with multiple rejections at the descending resistance level. The recent breakout from this structure, followed by a retest, represents a crucial technical signal that may pave the way for a bullish reversal.
Currently, SAND is trading within a key support zone between $0.23 and $0.28—an area that has historically served as a strong demand region. If buyers successfully defend this level, the price could initiate a significant uptrend, with notable resistance targets at $0.365, $0.800, $1.080, $1.500, and $2.600.
Is a Reversal Imminent?
The upcoming trading sessions will be critical in determining SAND’s next price movement. A successful defense of the support zone and subsequent reclaiming of key resistance levels could trigger a major rally. Conversely, failure to hold support may extend the ongoing correction phase, prolonging bearish conditions.
Investors and traders will be closely monitoring this retest to assess whether SAND can sustain its breakout and confirm a bullish reversal in the coming weeks.
