Crypto bulls have been playing with SAND for the last two weeks, leading to a healthy 85% rally from its lowest price level in June. A bearish correction might be imminent due to profit-taking after the rally. But a new development suggests that the bulls might stay a while longer.
SAND’s price action bottomed out at $0.73 on 18 June before embarking on an upward trajectory. It topped out at $1.33 before a slight pullback courtesy of some profit-taking. It traded at $1.06 at press time. However, what’s more, important is that on 28 June, SAND’s price action managed to break through the descending support line of its falling wedge pattern.
Source: TradingView
The coin’s slight downside after its recent top is courtesy of selling pressure after its RSI crossed above its 50% mark. Its MFI registered slight outflows after almost touching the 80-mark. Although SAND’s indicators point towards a high probability of more downside, there is a new development that might keep the bulls excited a while longer.
Bracing for a SAND storm?
Binance recently announced the launch of a SAND staking facility that offers yields as high as 14.50%. Such a development might encourage users to hold on to their SAND just yet by staking it instead of selling, potentially supporting a higher price floor.
This is a hypothetical scenario for now, but SAND’s on-chain metrics can provide a bird’s eye view of whether the value is flowing in, or out of SAND.
The number of active addresses increased significantly in the last three days, peaking at 1,669 on 28 June. Meanwhile, exchange inflows peaked at 1.06 million while outflows peaked at 63,672 SAND during the same trading session.
Source: Santiment
The above accounts for the selling pressure that prevailed during a trading session on 28 June. Additionally, the outcome given above confirms that whales are not motivated to buy more at the latest prices.
Any bullish sentiments were further dampened by a decline in network growth. As a consequence, whales have been offloading their SAND bags to cash in on the latest upside, as seen in the supply held by whales metric.
Source: Santiment
SAND’s price action is still holding well, despite the latest outflows and slight downside. The market sentiment in the next few days will determine whether a deeper sell-off will take place or whether the bulls will find more traction.
