-
The Sandbox token trades at the lowest level in the year
-
Santiment data indicates SAND is at “opportunity zones”
-
We expect the Sandbox token price to sink further until the bear market subsides
It continues to be lonely in the metaverse. With few fundamentals and developments coming up, investors are still dumping the metaverse-related tokens. In the past week, the token of the popular metaverse platform, The Sandbox (SAND/USD), has lost almost a quarter of its value. Take into account that this cryptocurrency was already trading at exceedingly depressed levels. SAND now trades at $0.44, although Santiment data gave an “opportunity” signal. Would you take it?
Santiment is a crypto analytics firm known for data feeds and updates. According to the firm, tokens of metaverse platforms, including SAND, are trading at “opportunity zones.” The analytics firm uses the market-value-to-realised value or MVRV to make the judgement. MVRV relates an asset market cap and compares it with the realised capitalization. The resulting ratio is used to identify overbought and oversold conditions.
Using MVRV, Santiment says the Sandbox token, in addition to Decentraland’s MANA, is at historical pain points. These are underbought and semi-underbought zones where big bounces occur. A technical outlook shows RSI flushing overbought conditions on a clear downtrend.
SAND on a downtrend as it touches a new low in the year
From the technical outlook, SAND trades at the lowest level in the year. The bottom price was last reached in July 2021. The cryptocurrency is currently oversold, with the RSI reading now at 30. SAND maintains a clear downtrend.
Is a rebound likely for SAND?
It could be too soon to think of buying SAND. Despite the Santiment data and RSI pointing to underbought and oversold conditions, respectively, the price is bearish.
Again, the market sentiment remains bearish. Since SAND trades alongside the broader market, it could be too early to make a bull call. SAND could find support next at $0.36.
Where to buy SAND
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
The Sandbox (SAND/USD) crashed by nearly 5% on Monday, extending its losing streak in the bear market. The loss took the token to a yearly low of $0.52 before recovering slightly. As it stands, the token of the Metaverse platform is under the control of bears.
It is not only SAND that is under pressure. Metaverse peers feel the heat of a very calm virtual reality space amid a prolonged crypto winter. This year’s activity is below par for a sector that was expected to witness unprecedented growth.
Take the case example of Horizon Worlds, the flagship metaverse for tech giant Meta. As of October, reports indicated that Horizon had amassed less than 200,000 monthly active users. Unless a miracle happens, Meta is unlikely to hit 500,000 MAUs by the end of the year, as initially projected.
As to whether the low activity in the metaverse is connected to the crypto winter, time will tell. At the moment, the metaverse is simply underperforming. The Sandbox token has, therefore, been in a prolonged downturn owing to fewer entities entering the nascent sector. Will the token set a new low?
SAND heading to $0.40 next?
On the weekly chart, there is no clear bottom price for the Sandbox token. However, the area around $0.4, when SAND started to turn bullish, should remain of interest. That implies that SAND could fall by up to 30%. Nevertheless, looking at the candlestick price pattern, the bear market has been cooling.
When to buy SAND
SAND price is bearish and not attractive for a buy. Nonetheless, significant price declines are unlikely, and SAND could begin a reversal if the RSI hits the oversold levels. Still, the prevailing crypto sentiment should guide ascertaining a bullish reversal for the cryptocurrency.
Where to buy SAND
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
-
Sandbox has lost over 80% since peaking above $8
-
The token is currently trading at less than $1 and could go lower
-
The blockchain gaming platform had its first metaverse wedding this week
Sandbox SAND/USD is trading at $0.8745 after a dismal 1.08% gain in the past day. The metaverse token is down by a whopping 89% from the November ATH. Despite the huge sell-off, Sandbox is weathering the storm by introducing new use cases.
The blockchain-based gaming platform held its first metaverse wedding five days ago. Sandbox COO Sebastian Borget officiated the event. The function was live on the blockchain with digital avatars replicating reality.
Aside, Sandbox is gaining ground among financial institutions. This month, the largest Southeast Asian bank, DBS, partnered with the network to launch lending services. Other financial giants like JP Morgan and HSBC have taken their services to the virtual space. Let’s get into the details.
The Sandbox is a gaming platform with three integrated products. First, the Voxel editor, a 3D voxel modeling that allows for NFT creation for PC and Mac. The second product is the Sandbox NFT marketplace. The platform enables users to upload, publish, and sell NFT creations. Lastly, Sandbox game maker is meant for building 3D games at no charge.
Broadly, Sandbox is designed for building, owning, and monetizing gaming experiences. Away from the fundamentals, Sandbox is looking bearish at key support.
SAND retreats to the bottom of a horizontal channel
eToro
eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Source: TradingView
Technically, SAND has been locked in a consolidation pattern since May. It has been oscillating between $0.8 support and $1.4 resistance. Currently, below the 20 and 50 moving averages, SAND could easily lose the current support. The Stochastic Oscillator can affirm the sentiment. The metric is above the oversold zone. If SAND loses the current level, it could find new support.
Concluding thoughts
A bullish reversal in Sandbox is not on the horizon. The token remains locked in a consolidation. Momentum indicators are showing bearish signals, and SAND could retest lower levels.