Following a significant surge in the past few days, The Sandbox [SAND] appears ready for a price dip as a large number of tokens flood centralized exchanges.
Massive Dump of 25M SAND from Wallet
On September 25th, the on-chain analysis company Eyeonchain reported on X (formerly Twitter) that the wallet address “0x010” associated with The Sandbox had unloaded 25 million tokens, valued at $7.08 million, onto Binance and OKX.
The post also highlighted that this wallet had received 41 million SAND worth $11.32 million from The Sandbox. Furthermore, a significant amount of these tokens have already been transferred to centralized exchanges, signaling a potential sell-off.
The Sandbox: Price Momentum Analysis
Despite the substantial dump, SAND has not witnessed significant price movements in the recent hours. At the moment, SAND is being traded around $0.281, showing a slight 1% increase in price over the past 24 hours.
During the same timeframe, trading volume has surged by 21%, indicating heightened engagement from traders and investors.
According to CryptoCrypto’s analysis, SAND appeared bearish presently, trading below the 200 Exponential Moving Average (EMA) on a daily chart, indicating a downward trend.
The 200 EMA serves as a key technical indicator used by traders and investors to determine the direction of an asset’s trend.
Moreover, the asset has encountered price resistance near the critical level of $0.288 at present.
Considering the historical price trends and the recent token dump, there is a high likelihood of SAND dropping by 15% to reach $0.231 in the upcoming days.
The bearish sentiment for The Sandbox will persist as long as SAND remains below the $0.29 mark; otherwise, the bearish scenario might not materialize.
Negative On-Chain Data Strengthening Bearish Outlook
Further validating this pessimistic outlook are on-chain metrics. The Long/Short Ratio for SAND stood at 0.84 currently, underscoring a bearish sentiment prevailing among traders.
In addition, Futures Open Interest has risen by 4.2% in the last 24 hours, indicating that bears are increasingly inclined towards short positions compared to long ones.
At present, 54.14% of prominent traders are holding short positions, while 45.86% are in long positions. Hence, bears are in control of the asset, potentially exerting selling pressure in the forthcoming days.