The Sandbox: What should investors expect in the aftermath of SAND’s latest market blunder?

As the crypto market recovered from a week-long rally, the Sandbox [SAND] defied expectations, surging 14.14% to a thirty-day high. The metaverse token had earlier followed market sentiment, registering greens for the majority of the previous week.

However, the most recent 24-hour rally was far superior to any surge SAND experienced in the previous seven days. With The Sandbox clearly not slowing down, investors’ expectations may align with the token’s persistence in the short term.

Spread the message in every nook and cranny

A number of factors might have played a role in SAND’s rise to $0.908. However, an undeniable part would be The Sandbox having a notable fashion giant key into its metaverse plans.

According to Forbes,  fashion-power house, Gucci, officially went live with its first Sandbox experience. Interestingly, the web 3.0 event which started on 27 October would run until 9 November. The implication of this might be that SAND could remain relevant even as its 24-hour trading volume surged over 170%.

The Sandbox price and volume

Source: Santiment

Besides the volume, SAND seemed to have attracted new investors. This was evident from the network growth increase. With the uptick in network involvement, SAND was likely to continue gaining traction from the crypto community.  Nevertheless, it was necessary to consider the state of the exchange supply.

At press time, Santiment revealed that total exchange supply had risen to 16.49%. This increase meant that investors could be directing profits made from the past few days into the exchanges. As such, there was a high likelihood of selling pressure. So, investors might need to be extra careful in anticipating another series of upticks in the coming days.

SAND exchange supply and network growth

Source: Santiment

Have traders taken advantage?

Considering the momentum displayed by SAND, one would expect that traders would have key into the “opportunity”. Interestingly, that was the case as Santiment showed that the Binance and FTX  funding rates for SAND were in a positive state. This implied that futures traders were interested in taking advantage of the price swings to make profits.

Funding rate of Sandbox traders

Source: Santiment

Despite the uptick recorded, it seemed that liquidations were almost at par with both shorts and longs. According to Coinglass, about $1.4 million worth of SAND had been liquidated in the last 24 hours. However, the difference between both these opposite ends wasn’t much surprisingly.

At press time, shorts were liquidated at a little over $698,000. For long-position traders, it was $477,050. With this data, it might be mandatory for investors looking to profit more to watch their steps.

Sandbox liquidations

Source: Coinglass

On the four-hour chart, SAND was showing extreme signs of volatility. Based on indications from the Bollinger Bands (BB), the highly volatile state exploded beyond its moderate state in the early hours of 30 October.

While this contributed to the price hike, it could also lead SAND down the charts. In addition, the Moving Average Convergence (MACD) revealed that the sellers (orange) were close to catching up with the buyers. In the case of meeting up or overtaking, SAND might halt its rally.

The Sandbox four-hour chart

Source: TradingView

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