Bitcoin leverage hits 5-year high – How ONE move could trigger pullback
Sandbox’s price registered gains of 1.75% over the last 24 hours, showing signs of heading higher after setting up a bullish reversal pattern on 21 February. In fact, on-chain metrics seemed to indicate that the uptrend is likely to continue on the charts.
A perfect concoction of bullishness
SAND’s price was rangebound and showed no evident signs of moving higher, at least from a technical perspective. However, due to the consolidatory nature of the price action, there is a good chance of a volatile move. Even so, such an indication would lack any directional bias.
On-chain metrics, on the other hand, underlined a much more nuanced outlook for Sandbox. According to the same, the bullish outlook is not a question of ‘if’ but ‘when.’
The supply on exchanges is an important metric since it helps determine potential sell-side pressure, a part of it, if not the whole picture. In Sandbox’s case, if the number of SAND tokens held on centralized entities increases, it indicates investors’ uncertainty. During a flash crash, these holders are likely to panic sell their holdings, adding more pressure and steepening the nosedive.
On 8 February, the number of SAND spiked from 441 million to 542 million, indicating an inflow of roughly 100 million tokens. Since then, SAND’s price has crashed from $4.8 to $2.7, denoting a 43% crash and further signifying the importance of this metric.
Source: Santiment
What more should you know
However, this spike in tokens held on exchanges later dropped back to the pre-spike days. This is a sign that there isn’t a lot of sell-side pressure. This development also reveals that the bulls may just be ready for a takeover.
Further supporting this thesis is the recent spike in social volume for Sandbox to 11,642 – A new all-time high. This spike also suggested that retail investors are interested in SAND at the current price level.
During slumps, this uptick could serve as a bottom signal with the contrary of this being true as well.
Source: Santiment
The Market Value to Realized Value (MVRV) model seals the deal for the bullish thesis as it has been hovering around 20% since 20 February. This indicator is used to assess the average profit/loss of investors who purchased SAND tokens over the past year.
A negative value below 10% indicates that short-term holders are at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.”
So, investors can expect long-term buyers to swoop in and accumulate SAND at a discount, kick-starting an uptrend.
Source: Santiment
Combing the three on-chain metrics reveal a perfect concoction for the bullish outlook that is set to take over Sandbox.
