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Should investors wait for a 60% comeback of SAND amidst market capitulation

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Source: Pexels


Sandbox price is fast approaching a vital support zone that is likely to absorb the incoming selling pressure and kick-start a bull rally. The bullish perspective for SAND is backed by on-chain metrics, suggesting a similar outlook.

A brief yet bullish future

Sandbox price has crashed roughly 68% in the past four months and is currently sliding lower, approaching the $1.53 to $2.44. A bounce off this level will likely witness a strong surge in buying pressure, triggering a minor uptick for the token.

In Sandbox price’s case, the bounce-off is not the first problem, but the nearing of Simple Moving Averages (SMAs) is. Therefore, the upside for SAND is extremely dense and will require a strong and stable amount of buying pressure.

A quick reaction of the demand zone will likely propel SAND by 28% before retesting the 200-day SMA at $3,179. Flipping this barrier could see Sandbox’s price make a run at the next target at $3,49.

In a highly bullish case, SAND is likely to make its way to the 100-day SMA at $4.28. In total, this run-up would be a 60% gain and is likely where the Sandbox price will set a swing high and retrace.

Source: TradingView, SAND/USDT

Supporting this exponential run-up for Sandbox price is the 30-day Market Value to Realized Value (MVRV) model, which is hovering at -19%. This indicator is used to assess the average profit/loss of investors who have purchased SAND tokens over the past year.

A negative value below -10% indicates that short-term holders are at a loss and are typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.”

For the last year or so, the SAND price has seen a considerable reversal in its price as MVRV hits -18%. In fact, Sandbox’s price has rallied 25% to 50% twice in the last four months when the 30-day MVRV hit -18% or lower, adding credence to the bullish thesis.

SAND 30-day MVRV chart

While things are looking up for Sandbox’s price, there is a good chance this outlook could turn sour if bears take over. A breakdown of the $1.53 support level will invalidate the demand zone and, therefore, the bullish thesis detailed above.

In such a case, SAND could slide lower and find stable support levels until sidelined buyers decide to step in and give the bull rally another attempt.

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Manisha is a News Editor at AMBCrypto. With a Master's degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

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