The Sandbox: Is there further decline in store?
- SAND was the fourth most-sold token among the top 100 ETH whales in the last 24 hours.
- Metrics and market indicators remained bearish on SAND.
The Sandbox [SAND] will have its next token unlock in eight days. The new unlock will account for over 16% of its supply.
Read The Sandbox’s [SAND] Price Prediction 2023-24
A look at the current market trend gave the idea that investors were dumping SAND, which could worsen SAND’s already declining price action. Whales’ confidence in the metaverse token was also sinking, which raised alarms.
The Sandbox is under pressure
Token Unlocks’ data revealed that The Sandbox was awaiting its next unlock, which is scheduled to happen on 14 August. The unlock will inject 332.5 million SAND into the market.
Generally, token unlocks are followed by price drops because of the increase in supply and the drop in demand. However, a few developments over the past few days could push down SAND’s price even prior to the unlock.
As per Lookonchain, The Sandbox wallets transferred 127 million SAND, worth $51.32 million, on 4 August 2023. To add to the misery, a look at SAND’s on-chain metrics revealed that the token was already under immense selling pressure.
— Lookonchain (@lookonchain) August 4, 2023
CryptoQuant’s data pointed out that SAND’s net depositors on exchanges were high compared to the seven-day average. Its exchange inflow also increased substantially over the last few days, proving that The Sandbox was witnessing a sell-off.
It was interesting to see that whale activity around SAND spiked, as evident from its whale transaction count.
On top of that, the selling pressure was also proved by SAND’s supply held by top addresses, which went down of late.
The Sandbox’s troubles are far from over
The negative metrics looked concerning for SAND’s already declining price action. According to CoinMarketCap, SAND was down by over 7% in the last seven days. At press time, it was trading at $0.3981 with a market capitalization of $819 million.
In fact, a recent tweet from IntoTheBlock revealed that more than 90% of SAND investors were at a loss. Not only The Sandbox, but most of the metaverse tokens were under bears’ influence. Cryptos like ApeCoin [APE], Decentraland [MANA], and multiple others registered massive price drops over the last week.
Realistic or not, here’s SAND’s market cap in BTC’s terms
Like metrics, most market indicators were also bearish. The Exponential Moving Average (EMA) Ribbon displayed a clear bearish edge in the market. SAND’s Relative Strength Index (RSI) registered a downtick.
Nonetheless, the metaverse token’s Chaikin Money Flow (CMF) turned bullish as it gained upward momentum.