SAND Token Drops Below 200-Day MA For The First Time Since July

The SAND token drops below the 200-day MA for the first time since July and got caught up with the rest of the market after weeks of maintaining the downward pull so let’s take a closer look at today’s latest altcoin news.

The cryptocurrency dipped below the 200-day moving average and joined the peers from other crypto sub-sectors that sign a gloomy market sentiment. The coin dropped under the critical $2.93 level and dropped to the lowest levels since January according to the Binance data and Tradingview charts. SAND token dropped below the 200-day MA from July 2021.

The Sandbox introduced a staking mechanism of scaling solution Polygon allowing the users to stake SAND without having to worry about the gas fees but this move failed to arrest the decline towards the 200-day MA. The staking is a process of locking up coins in the blockchain for a period of time to contribute to security in return for rewards. The measure represents the average UTC closing price for the past 200 days and it is an indicator that is used to identify long-term trends. With traditional finance, teh general rule is that I fa stock is trading below the 200-day MA, the trend is downward most likely.

SAND surged over 750% in the final three months of 2021 and it is maybe the last of the coins to enter the bearish territory below the 200-day MA. BTC as the main cryptocurrency dropped under the average back in December and a week later, ETH and AXie Infinity’s AXS coin followed suit. UNI, XMR, AAVe, LINK, and YFI also dropped below their 200-day MA earlier this year. The total market cap of cryptos without BTC, the altcoin market cap stood at $936 billion which is well under the 200-day MA at $1.29 trillion which was a level surpassed in mid-January. The founder of Mumbai-based crypto asset management company MitingM Jetesh Tipi noted:

“Majorly professional traders track the high-level indices like total alternative cryptocurrencies’ market capitalization and total crypto market value. Both metrics are now trading under the 200-day MA, hinting at prolonged consolidation. Historically, crypto markets’ dip under the 200-day MA has been followed by a couple of quarters of consolidation and a renewed move higher. Holding BTC in such situations has proved to be good to protect the downside and reduce the volatility on the overall portfolio.”

The independent market strategist and crypto enthusiast Ravi Jain suggested that major coins that trade below 200-day MA signal more pain ahead for the market. He said that there was a perfect bull market signal three months ago when BTC didn’t sustain its high on the FED rate hike fears but since then, BTC cratered with other coins.

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• Source: https://www.dcforecasts.com/altcoin-news/sand-token-drops-below-200-day-ma-for-the-first-time-since-july/