The entire digital currency market is currently witnessing a significant rebound.
Against this backdrop, The Sandbox (SAND), a virtual gaming platform, has broken out of a robust bullish formation, shifting the market sentiment from bearish to bullish.
Technical Analysis and Critical Levels for SAND
As per the technical analysis by CryptoCrypto, SAND displayed a bullish trend as it broke free from a double-bottom pattern. The breakout was confirmed by the daily close above the pattern’s neckline.
If SAND manages to close a daily candle above $0.264, there is a high likelihood that it could surge by 15% to hit the $0.305 mark in the near future.
Moreover, the Relative Strength Index (RSI) for SAND currently sits at 52.30, suggesting a potential upward rally on the horizon.
Despite the positive outlook for SAND, the 200-day Exponential Moving Average (EMA) still indicates a downward trend. Traditionally, when an asset trades below the 200 EMA, it is considered to be in a downtrend, and vice versa.
Bullish On-Chain Metrics for SAND
The optimism around SAND is further bolstered by on-chain metrics. According to Coinglass, SAND’s Long/Short Ratio was at 1.03, indicating a bullish sentiment prevailing in the market.
Additionally, the Futures Open Interest for SAND saw a notable increase of 5.6% in the last 24 hours and 3.91% over the past four hours.
This uptrend in Futures Open Interest signifies a growing interest among traders in the SAND token post the breakout from the double-bottom pattern.
Key Liquidation Thresholds
Currently, the major liquidation thresholds are positioned at $0.255 and $0.27. Traders are deemed to be overly leveraged at these levels, as reported by Coinglass.
If the market sentiment persists and the price ascends to $0.27, it could result in liquidating approximately $308,620 worth of short positions.
Conversely, if there is a shift in sentiment leading to a dip in price to $0.255, around $732,960 worth of long positions may face liquidation.
The data on liquidations demonstrates that long positions among bulls are more than double the short positions among bears.
Considering the amalgamation of on-chain metrics and technical analysis, the prevailing narrative suggests that bulls are in control of SAND and have the potential to propel it towards an upcoming uptrend.
Present Price Momentum
As of now, SAND is trading close to $0.266, exhibiting a price surge of over 5.2% in the past 24 hours.
However, the trading volume for SAND during this period has witnessed a 6% decline, indicating reduced engagement from traders and investors.