Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Sandbox (SAND) Leads Market Gains, Yet $1 Still Out of Sight

Sandbox (SAND) Leads Market Gains, Yet $1 Still Out of Sight

BeInCryptoBeInCrypto2024/11/25 04:30
By:Abiodun Oladokun

SAND’s rally to $0.86 sees profit-taking by long-term holders and rising exchange deposits. Overbought signals hint at further pullbacks.

The Sandbox (SAND) continued its bullish trend, hitting a new yearly high of $0.86 during Monday’s early Asian session. However, it has since pulled back by 14%, trading at $0.76 at press time.

Despite the recent surge, on-chain and technical indicators suggest that the much-anticipated $1 price target remains unlikely for now. Here’s why.

The Sandbox’s Long-Term Holders Book Profit

SAND’s price hike over the past week has prompted its long-term holders to move their previously dormant tokens around. This is reflected in the surge in the token’s age-consumed metric, which measures the movement of long-held coins. According to Santiment, this skyrocketed to a two-month high of 33.19 billion on Sunday. 

This metric’s rally is notable because long-term holders are not in the habit of moving their coins around. Therefore, when they do, especially during periods of price uptick, it hints at a shift in market trends. Significant spikes in age-consumed during a rally like this suggest that long-term holders are offloading, possibly leading to increased selling pressure.

Sandbox (SAND) Leads Market Gains, Yet $1 Still Out of Sight image 0SAND Age Consumed. Source: Santiment

Notably, the rise in SAND’s Exchange Flow Balance over the past 24 hours confirms the selling activity. According to Santiment, this metric, which measures the net difference between the amount of an asset sent to exchanges and the amount of an asset withdrawn from exchanges over a specific period, has climbed by 162%. 

This reflects an increase in the amount of SAND tokens being deposited to exchanges. It signals that holders are preparing to sell, possibly leading to downward price pressure.

Sandbox (SAND) Leads Market Gains, Yet $1 Still Out of Sight image 1SAND Exchange Flow Balance. Source: Santiment

SAND Price Prediction: Metaverse Token Is Overbought

On the daily chart, SAND’s Relative Strength Index (RSI) stands at 87.18, indicating overbought conditions. The RSI measures whether an asset is oversold or overbought, ranging from 0 to 100. Values above 70 signal that the asset is overbought and could face a decline, while values below 30 suggest it is oversold and might rebound.

With an RSI of 87.18, SAND is signaling overbought conditions, putting it at risk of a near-term pullback. If a decline occurs, its price could drop to $0.72. Increased selling pressure at this level may push SAND further down to $0.61, distancing it even more from the sought-after $1 target.

Sandbox (SAND) Leads Market Gains, Yet $1 Still Out of Sight image 2SAND Price Analysis. Source: TradingView

On the other hand, the SAND token price may reclaim its year-to-date high of $0.86 if the selling pressure wanes. This will invalidate the bearish thesis above.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!