The Sandbox [SAND] has recently broken out of a falling wedge pattern, hinting at a substantial increase in price. Analysts are eyeing key levels at $0.31 and $0.40, with a particular focus on the 100-day moving average.
An upward move beyond this crucial level could kickstart an 80% surge in price. The question now is, can SAND maintain this momentum and spark a sustained rally in the long term?
An Insight into Transactions and Active Addresses
The number of unique active addresses stands as a significant metric in gauging market activity. Currently, SAND boasts 26.96 active addresses, marking a 1.2% uptick in the past 24 hours.
Moreover, transaction volume supports this positive trend, registering a 1.37% increase to 529 transactions, based on CryptoQuant data.
This consistent rise in activity signals growing user engagement with the platform, potentially laying the groundwork for the anticipated price surge.
Deciphering Exchange Reserve Analysis
Presently, the exchange reserve for SAND holds 562.76 million tokens, with a slight 0.02% decline pointing towards easing selling pressure.
A decreasing exchange reserve generally indicates a dwindling availability of tokens for sale, hinting at investors holding onto their positions in anticipation of a price upswing.
As a result, this aligns with the bullish breakout pattern observed on the daily chart, reinforcing the chances of an imminent rally.
SAND Liquidations: A Shift Towards Bullish Sentiment?
Analysing liquidation data provides valuable insights into market dynamics. Recent statistics disclose a liquidation of $109.59K in short positions, contrasting with just $19.19K in long positions.
This disparity suggests that traders betting against SAND are experiencing losses as the asset strengthens its position.
With the current price hovering around $0.279, the trend in liquidations might pave the way for further bullish momentum, potentially propelling SAND towards testing the $0.31 target and surpassing it.
Ensuring the Longevity of SAND’s Breakout
With increasing transaction volumes, a rising number of active addresses, and diminishing exchange reserves, SAND’s market outlook appears well-equipped for a sustained uptrend. The liquidation data further supports a bullish narrative, with short positions being squeezed out continuously.
A successful breach of the 100-day moving average could firmly position SAND on the trajectory towards substantial gains, targeting short-term goals of $0.31 and $0.40.