After zooming out on the crypto charts, we spotted a couple of patterns interesting enough to throw on our longer-term portfolio watchlists. Today, we’ll take a quick look at potential breakout on Cardano (ADA) and a pullback move on Sandbox (SAND).
We last looked at Cardano at the end of August, arguing that a round of profit taking my hit the market after ADA/USD rocketed higher to $3.00 in anticipation of Cardano’s upgrade to bring in smart contracts. Well, the market did dip, and boy did it dip big as it’s made several attempts to break the $2.00 area in September and October.
Throughout this time, we saw the market form a lower ‘highs’ pattern indicating seller strength, possibly on traders lightening up their ADA bags as we await for the Cardano ecosystem to build out. But this week, we finally saw that pattern broken and the pair seems to be sustaining trade above previous swing ‘highs’ for now.
This pop doesn’t seem to have a direct catalyst, but it could be argued that it may have been influenced by updates relating to an updated from the team SundaeSwap, one of the potential first Decentralized Exchanges to come to the Cardano blockchain. While still in its test phase, this news may have been interpreted as a sign that the Cardano ecosystem is ready to get going and growing.
So, it’s likely that as we hear of more protocols going live on Cardano the hype train may start moving on price as well. But we’ll keep this on our watchlist for now, and look to potential build a long position on any retest of the $1.90 – $2.20 range.
Sandbox (SAND)is the native token of the Sandbox Metaverse, where users can build and play in their own virtual experiences. The price of SAND exploded at the end of October, one of the many crypto assets to benefit from Facebook’s announced strategy refocus on the Metaverse. SAND/USD quickly pumped from roughly $0.73 to a high of nearly $3.50 on the event, but is now dipping as the initial excitement is now fading.
Longer-term, the move to focus on the metaverse and crypto is likely to benefit the price of SAND, but in the short-term this dip may have further to go, especially with the market now focusing on all-time highs in bitcoin and ether.
We’re watching for a potential pullback deep into the Fibonacci area and see if that draws in buying support from potential longer-term holders/investors. Given the daily ATR of around $0.39, a retest of the 61% Fib this week or next is in the realm of possibilities, and we’ll look there around the $1.75 – $2.00 range for bullish reversal patterns before considering a longer-term position.
What do you all think? Are Cardano and Sandbox potential longer-term holds or will the bears gain control again? Let me know in the comments section below!