Market Overview for The Sandbox/Tether (SANDUSDT) on 2025-11-03

• The Sandbox/Tether (SANDUSDT) declined by 6.7% over the past 24 hours, closing at 0.1839 after a sharp selloff post-noon ET.
• Volatility spiked midday, with a 0.2072 high dropping to 0.1835 within a 2.5-hour span, reflecting bearish momentum and panic selling.
• Heavy volume (~3.5M USD) confirmed the breakdown, while RSI and MACD signaled overbought exhaustion before the drop.
• The 20-period 15-minute MA turned downward, aligning with a breach of key support at 0.2016 and a test of 0.1835.
• Bollinger Bands expanded sharply during the sell-off, indicating a potential reversion toward the lower band or a continuation if volume sustains.

The Sandbox/Tether (SANDUSDT) opened at 0.2037 at 12:00 ET − 1, reached a high of 0.2084, and fell to a low of 0.1754 before closing at 0.1839 at 12:00 ET. Total volume traded over the 24-hour period was approximately 22.7 million USD, with significant selling pressure emerging in the late morning. The price structure shows a bearish breakdown from key intraday resistance and a prolonged test of recent support levels.

Structure and formations revealed a critical breakdown from the 0.204–0.208 resistance cluster, confirming a bearish bias. A Bearish Engulfing pattern emerged at 0.2072 on the 15-minute chart, but due to its isolated nature, it lacked follow-through. The price continued downward, testing the 0.1835 support level by late afternoon, where it found a temporary floor. The 20- and 50-period moving averages on the 15-minute chart are both in a steep downtrend, reinforcing short-term bearish momentum. On the daily chart, the 50-period MA is slightly above the 100-period MA but both are below the 200-period MA, suggesting a mixed medium-term trend.

Momentum indicators underscored the bearish shift. The RSI collapsed from overbought territory (~70) to a sharp oversold level (~25), signaling exhaustion of the sell-off. The MACD crossed below the signal line in early afternoon, with a negative histogram widening, indicating strengthening bearish momentum. These signals align with a breakdown in price, where traders may interpret the oversold RSI as a potential near-term bottom, though caution is warranted given the recent magnitude of the drop. Bollinger Bands expanded to their widest point since the 15:30 ET timeframe, with price near the lower band and volatility remaining elevated. This suggests that the current move may not yet be complete, and a retest of the 0.1754 low or a bounce toward 0.184–0.1930 could follow.

Volume and turnover were particularly telling. While the morning saw moderate volume, the sharp selloff after 15:30 ET brought in massive volume (over 3.5 million USD in a single 15-minute bar), signaling capitulation. Turnover also spiked in the 15:30–17:00 ET timeframe, with the 15:30 ET candle alone accounting for 3.529 million USD. The divergence between the morning's higher price and relatively lower volume versus the late afternoon's aggressive sell-off and massive volume supports the view of a strong bearish conviction in the market.

Fibonacci retracements from the recent 0.2072 high to the 0.1754 low show the current price near the 61.8% retracement level (~0.1833). This level may act as a temporary support or pivot, depending on whether the market consolidates here or continues lower. On the 15-minute chart, the 38.2% and 61.8% retracement levels from key intraday swings also align with recent lows, suggesting possible retests of 0.1800 or 0.1754 in the near term.

Backtest Hypothesis

A proposed trading strategy based on the Bearish Engulfing candlestick pattern was tested on SANDUSDT from 2022-01-01 to 2025-11-03. The strategy would have triggered a sell signal each time a Bearish Engulfing pattern appeared and a long cover on the next close. However, the backtest process encountered an issue: no valid Bearish Engulfing patterns were detected during the period under the standard criteria used. This resulted in no actionable trades and, consequently, a flat performance (0% return, 0% draw-down). The absence of such patterns could imply that the market lacked the directional clarity needed to generate them, or that the pattern definition could be too strict for SANDUSDT’s typical price behavior.

To improve the backtest feasibility, the pattern definition could be relaxed—allowing intraday engulfing or adjusting the body overlap criterion—thereby increasing the likelihood of capturing tradeable signals. Alternatively, the same pattern could be tested on other coins or different timeframes. If preferred, other bearish patterns such as the Dark Cloud Cover or Shooting Star could be explored to evaluate their efficacy on SANDUSDT.