- Sandbox has retraced 38% from its ATH and retests critical support zones, awaiting a higher move.
- A significant-close beyond $5.5 will approve upswings and catalyze a 22% rally to $6.77.
- If the metaverse token forms a lower low beneath $3.77, it will nullify the bullish narrative.
Sandbox (SAND) witnessed a significant correction within the past few weeks. The 4 December flash crash saw the metaverse coin tagging crucial support floors before triggering a fast recovery. For now, market participants may expect Sandbox (SAND) to surge higher.
Sandbox Bulls Encounter a Decisive Moment
Sandbox (SAND) has its price losing nearly 38% from the $8.48 all-time high to its current price level of $5.27. This downswing saw SAND tagging a 70.5% retracement area at $4.28. However, the alt moved away from this area within no time.
Meanwhile, SAND prints upside price moves after encountering rejection at the trading range’s mid-level and falling trend-line. However, Sandbox has to produce a higher high beyond $5.50 to confirm an uptrend started. In such a case, market players may expect the metaverse token to retest the $6.77 obstacle. The upward move to $6.77 from $5.27 would mean a 30% upswing.
The 30-day MVRV model by Santiment supports this bullish case while hovering at -1.7%, an opportunity zone. Analysts utilize this on-chain metric to determine average loss/profit by investors that bought SAND within the past month.
A negative reading shows that many of these holders encounter losses. Thus the probability of a crash is near zero. Furthermore, reversals come after MVRV stays in the opportunity territory of resets. Such a development supports the bulls’ comeback.
As things seem attractive for Sandbox (SAND) from an on-chain and technical viewpoint, market players need to act cautiously. Moreover, investors need to beware of massive transactions worth over $100,000 have collapsed by 79% since 24 November – 1,830 towards 476.
Therefore a surge in selling pressure to push SAND to form a lower low beneath $3.77 will cancel the bullish thesis. In such a case, SAND could correct the $2.52 range low. The metaverse crypto can relaunch another upswing from this area.
By Ira Lichi – shutterstock.com