Recent activity in The Sandbox [SAND] has surged, with 9.04M SAND ($3.28M) deposited into Binance within the last 13 hours, adding to a total of 19.05M SAND ($5.9M) over the past 26 days. As of now, SAND is being traded at $0.3465, marking a 2.20% decrease in value over the previous 24 hours.
Despite this decline, positive on-chain signals and critical technical levels indicate the potential for a significant price move in the near future.
Testing Crucial Resistance Levels
SAND’s price has been consolidating near a crucial resistance point at $0.375, which has historically played a pivotal role. The narrowing Bollinger Bands suggest reduced volatility, hinting at an imminent breakout. A successful breach of $0.375 could pave the way for a push towards $0.50. Conversely, failing to hold this level might lead to a price retreat towards the $0.34 support zone.
Currently, the Stochastic RSI sits at 71.87, indicating SAND is approaching overbought territory. A potential downward crossover could trigger a short-term price pullback, presenting an opportunity for traders to re-enter the market before another attempt at breaking the resistance level. Hence, the upcoming trading sessions will be crucial in determining SAND’s next move.
Encouraging On-Chain Signals Reinforce Optimism
Despite recent price fluctuations, on-chain metrics continue to paint a positive picture for SAND. A 0.39% increase in net network growth suggests a growing user base. Notably, 1.67% of SAND holders were in a profitable position at the current valuation, indicating resilience in spite of price drops.
The concentration metric also showed a 0.04% rise, highlighting a balanced distribution of tokens among larger holders and retail investors. Furthermore, a notable uptick of 13.10% in large transactions points towards increasing interest from institutional investors and high-net-worth individuals, potentially reinforcing long-term confidence in SAND’s prospects.
Short Positioning Presents Contrarian Potential
At present, the long/short ratio reveals that 52.72% of traders hold short positions compared to 47.28% longs, resulting in an overall ratio of 0.8968.
Although slightly bearish, such scenarios often set the stage for a short squeeze. Should SAND breach the resistance level, liquidations of short positions could propel a rapid upward price movement.
Anticipating a Breakout in the Altcoin Market
With indicators pointing towards a potential breakout above $0.375, optimism surrounds The Sandbox’s future price action. While short-term retracement remains a possibility, robust on-chain metrics and institutional interest underpin a bullish outlook. A successful breach of the key resistance level could drive SAND towards $0.50 in the imminent days.