Technical Analysis: DAI Overtakes Cosmos, as Warner Deal Sends the Sandbox Higher
Written by admin on January 27, 2022
The price of cosmos (ATOM) continued to decline on Thursday, while sandbox rallied following its partnership with Warner Music Group. Overall, crypto prices were trading 3% lower in today’s session, after yesterday’s FOMC announcement.
The token sandbox (SAND) was one of Thursday’s biggest gainers, climbing by as much as 8 %, as prices rose following news of a partnership with WMG.
It was announced that the partnership was made with the hopes of creating a concert venue/theme park within the metaverse.
SAND/USD hit an intraday high of $3.54 on the news, which is its highest level in five days, and comes after a rally from support of $2.99.
Today’s move has helped to propel SAND into the crypto top 40, replacing helium (HNT) in the process.
Looking at the chart, prices have somewhat tailed off from today’s earlier highs, and now sit below a short-term ceiling of $3.57.
Many now wait to see the impact this partnership will have on the future of the metaverse.
Cosmos (ATOM) was down for a second consecutive session, falling to an intraday low of $30.14 in the process. This decline pushed cosmos below DAI, resulting in it becoming #20 in cryptocurrency market cap.
The move saw ATOM/USD extend its recent selloff, which began at the resistance level of $36.30 earlier in the week.
Over the weekend, ATOM attempted to break above this ceiling, however, market strength faded, once the RSI level of 50 impeded any further gains.
This level has acted as a point of uncertainty in the past, and coincided with a cross of moving averages which shifted momentum.
Looking at the chart below, the recent decline seems to have started just as the 10-day (red), and 25-day (blue) moving averages crossed downwards.
As a result, prices are now nearing support of $29.20 and were trading over 10% lower as of writing.
Will bears continue to push ATOM/USD lower in tomorrow’s session? Let us know your thoughts in the comments.
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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