The cryptocurrency market continues to be under pressure, and many analysts expect a global recession that could weigh on stocks and cryptocurrencies even more. Major central banks signaled that they would keep lifting interest rates in 2023 in order to bring down inflation, and it is important to note that the cryptocurrency market is still heavily correlated to equities and vulnerable to macro market shifts.
The upcoming year could be a tough period for Sandbox (SAND), and the crypto selloffs could gather speed if Bitcoin cannot hold at the $16,000 mark. The cryptocurrency market also faces a trust crisis as the collapse of FTX created unprecedented market turmoil that could last for several more months.
Many crypto firms have recently declared bankruptcy, such as Celcius and BlockFi, and as they look to pay back creditors, they may liquidate their crypto assets, which could trigger another sell-offs in the crypto market. At the same time, increasing regulatory pressure caused by these negative events could add further pressure on SAND and many other cryptocurrencies.
Technical Analysis Of Sandbox (SAND)
Sandbox (SAND) has weakened more than 50% since the beginning of November 2022, and the risk of further decline still persists. The price of this cryptocurrency is usually correlated with Bitcoin, and if the price of Bitcoin falls below $16,000, we could probably see SAND at a lower price level than the current price.
The current support level stands at $0.40, and a break below this level would indicate that we could see SAND at $0.35 or even below. SAND continues to move in a strong downtrend; still, if the price jumps above $0.50, the next target could be resistance that stands at $0.60.
Conclusion
The cryptocurrency market continues to be under pressure, and many analysts expect a global recession that could weigh on stocks and cryptocurrencies even more. The risk of further decline for SAND is not over, and in the days ahead, SAND might have a hard time holding above the current support level, which stands at $0.40.