Recently, The Sandbox [SAND] made a significant move by breaking out of a long-lasting falling wedge formation, indicating the possible start of a substantial uptrend. Currently trading at $0.2931 with a 12.06% increase at the time of writing, SAND has experienced a notable surge in trading volume and market interest recently.
The 24-hour trading volume has also surged by 126.45%, indicating a renewed enthusiasm from both traders and investors. The question remains: Can this breakout sustain the altcoin’s upward momentum?
Analysis of SAND’s Chart – What does the Breakout Signify?
The price chart of SAND has confirmed a robust breakout above the falling wedge pattern that kept the token in a downtrend for an extended period. Moreover, the Relative Strength Index (RSI) has climbed to 62.38, displaying bullish strength. The Bollinger Bands have also widened around the price candles.
These collective indicators suggest increased volatility, typically seen after such breakouts. Consequently, SAND’s price seems poised to enter a new phase of upward movement. However, the token will require consistent buying pressure to confirm its longer-term trend.
Surge in Active Addresses and Transaction Count – A Bullish Sign?
Furthermore, on-chain data from CryptoQuant has supported the recent price surge of SAND. The number of active addresses has risen by 1.54% in the last 24 hours, reaching 40.66k. This uptick in network activity indicates growing interest in the token.
Additionally, the total transaction count has increased by 2.1%, further reinforcing this positive trend. The rise in user engagement implies that SAND’s rally may be more than just speculation and could be supported by strong fundamentals.
SAND Exchange Reserve Analysis – Reduced Selling Pressure?
Over the past 24 hours, the exchange reserves for SAND have decreased by 1.06%, suggesting a lower availability of tokens for sale on exchanges. This decline in the circulating supply implies that sellers are transferring their tokens off exchanges, possibly to hold them.
Such behavior often precedes price increases as it alleviates immediate selling pressure in the market.
Surge in Open Interest – Are Traders Confident?
The open interest for Sandbox has soared by 28.26%, reaching $44.51 million. This significant increase indicates that more traders are initiating new positions, reflecting confidence in SAND.
Combining the rise in open interest with SAND’s price movement, it suggests a growing optimism for sustained profits.
Will SAND Sustain its Upward Movement?
The breakout of the altcoin, supported by strong technical signals and positive on-chain data, hints at a potential bullish trend reversal.
However, it is crucial for sustained buying pressure to uphold this momentum. While SAND shows promise, traders are advised to exercise caution amidst market fluctuations.