SAND had tracked the market’s mood earlier, recording gains for most of the past week. However, the most recent 24-hour rally outperformed any growth SAND experienced throughout the previous seven days. Sandbox is undoubtedly going to continue its progress. Thus, investors’ predictions for the token’s short-term persistence may align with that.
The Sandbox [SAND] bucked the trend by soaring 14.14%, reaching its thirty-day high, as the cryptocurrency market recovered from its weeklong uptrend. Earlier, the Metaverse currency followed market sentiment, recording gains for most of the past week.
SAND’s Latest Performance: A Positive Move?
The most recent 24-hour rally, however, much outperformed any surge SAND experienced over the previous seven days. Investors’ expectations for The Sandbox may shortly coincide with the token’s persistence, given that its pace is not slowing down.
The Sandbox aims to offer its players a revolutionary gaming experience by giving the creators “real ownership” in the form of Non-Fungible Tokens (NFTs). These incentives for participating in the game’s ecosystem have given players and producers a good reason to keep playing.
The game’s developer, Pixowel, chose to add 3D gameplay in 2017–2018 while introducing it to Ethereum’s blockchain. The author decided to transfer this popular User Generated Content (UGC), the gaming IP, and a group of mobile developers to the blockchain ecosystem.
However, this new move might not be enough to solidify the token’s current run in the market. Analysts predict that while the token might enjoy its newly-found bullish run, the dust will settle, and there are higher chances of a rangebound movement.
Disseminating The Reason Behind ETH’s Latest Price Movement
Various things could have caused the increase in SAND’s price to $0.908. However, an undisputed factor would be The Sandbox’s involvement with a renowned fashion tycoon in its Metaverse goals.
Forbes reports that Gucci, a significant name in fashion, launched its first-ever Sandbox experience. The web 3.0 event began on October 27 and would last until November 9. As a result, SAND could continue to be relevant despite a 170% increase in its 24-hour trading volume.
In addition to the volume, SAND has drawn new investors. The network expansion rise made this clear. With the increased network activity, SAND will probably keep gaining popularity among crypto enthusiasts. First, however, it was essential to consider the condition of an exchange supply.
According to Santiment, the total exchange supply was 16.49% at the time of publication. With the surge, investors could transfer gains from recent days into the markets. Thus, there was a great chance of selling pressure.
Investors may need extra caution when preparing for another upturn in the days ahead.
How Can The Traders Take Advantage Of Their Positions?
Given the momentum shown by SAND, one could have anticipated that traders might have taken advantage of the “opportunity.” Interestingly, that turned out to be the truth, as Santiment demonstrated that the financing rates for SAND on Binance and FTX were in a positive frame of mind.
This suggests that futures traders were motivated to profit from price fluctuations. Even though there had been an increase, it appeared that liquidations had nearly caught up to both shorts & longs.
Approximately $1.4 million worth of SAND had been liquidated the previous day, according to Coinglass. The disparity between these two opposites wasn’t shocking, though.
SAND was displaying extremely volatile behaviour. The extremely volatile state surged beyond its medium state in the early hours of October 30th, according to signals from the Bollinger Bands (BB).
While contributing to the price increase, this could also cause SAND to fall in the rankings. The Moving Average Convergence (MACD) indicator also showed that the sellers (orange) were on the approach of overtaking the purchasers. SAND might stop its rallying if it were to catch up with or pass another vehicle.
SAND’s Price Movement: A Short History
SAND has shown constant growth since its launch, as it has consistently turned its resistance levels into support over the past two years. In addition, Facebook’s switch to the “Meta” moniker fueled optimistic tendencies as users and investors saw the potential of the Metaverse. So, on November 25, 2021, SAND hit its ATH.
But due to a correlation with Bitcoin of over 70% on average, SAND lost value along with most other cryptocurrencies in the market. This fall prompted a recheck of its $0.8 zone annual support.
Given that the macroeconomic environment is unfavourable for risky assets as of press time, sellers may try to limit purchasing surges in the short to medium term.
Besides, a recent Mckinsey and Company analysis states that by 2030, worldwide spending within the Metaverse might total $5 trillion. The opportunities for value creation in the Metaverse are expanded upon in this report.
It says it might affect everything from customer satisfaction to omnichannel marketing and sales, innovative products, and community building.
Additionally, Citi Bank’s analysts found investment prospects after acknowledging the potential of the Metaverse in their most recent research. It estimates that the economy associated with the Metaverse could be as large as $13 trillion.
On the other hand, the bank also warns about potential risks and obstacles related to developing technology.
The Crypto Winter Is To Be Blamed Equally!
The “crypto winter” had a notable impact since it increased market-wide fear sentiment and caused many to sell in a panic. Unsurprisingly, since the beginning of 2022, the number of daily active cryptocurrency users has steadily decreased.
The falling number of active users clearly showed a drop in user interest. However, better market circumstances shortly may alter this story.
Similarly, the network’s development activity plummeted compared to March 2022 levels. Since August, though, there has been a noticeable increase. As a result, SAND’s price can increase if the price movement continues in that direction.
What’s your take on the token’s future? Would you invest or rest?