The Sandbox’s native cryptocurrency SAND has finally retested resistance after pushing back to May highs.
This is courtesy of the bullish performance in the last four weeks, during which SAND rallied by as much as 100% from its bottom in mid-June.
SAND has had multiple bounce-backs ever since its macro bearish trend started in November 2021. However, the latest uptick happens to be the biggest one.
This may not be surprising given that SAND was extremely oversold and was overdue for a bullish correction. The coin has already started experiencing some downward pressure near the 0.236 Fibonacci level.
SAND’s latest performance suggests- investors feel that the price is due for more recovery. This is within the realm of possibility if more funds continue flowing into the crypto space, especially if June turns out to be the bottom of the latest bear cycle.
Commanding strong volumes
One of the reasons behind SAND’s robust recovery since mid-June is that The Sandbox is at the top of the list of metaverse projects by market cap. This privilege means it can attract more investors quickly by virtue of its status.
Top 10 Metaverse Coins by Market Capitalization
— Ben GCrypto (@GCryptoBen) July 21, 2022
Furthermore, SAND’s volume peaked given that $1.02 billion coins were moved on 18 July. However, the volume dropped almost by half as of 21 July and despite this, the number of active addresses continued to surge.
SAND’s volume increase on 19 July suggests an increase in the number of addresses withdrawing from their wallets.
This may explain the selling pressure which also reflects outflows from top addresses.
Well, the supply held by top addresses further dropped by 0.33% between 19 July and 20 July, hence the selling pressure.
SAND’s supply distribution by the balance on addresses provides more clarity on why the latest bearish pullback has been limited.
It turns out that addresses holding between 100,000 and 10 million SAND have been adding back to their wallets.
The coin’s current price situation is a matter of whether it will continue pushing past May lows or potentially lose its recent gains.
The outcome largely depends on the overall crypto market sentiments.