Nov 12, 2024

6thTrade

The Sandbox (SAND), one of the top metaverse platforms in the crypto space, is gaining increased attention from large investors and institutions as it showcases strong bullish price action. Amid an optimistic market, SAND has witnessed a significant 250% rise in large transaction volumes, driven by heightened interest from whales and institutions.

Bullish Market Momentum Supports SAND’s Upward Trend

SAND’s bullish outlook is underpinned by favorable price action, increased interest from traders and investors, and positive market sentiment following Donald Trump’s recent U.S. presidential election victory. The current sentiment across the crypto market has positioned SAND for a potential rally, as it forms a promising bullish pattern on the daily chart.

Key Technical Levels for SAND

According to AMBCrypto’s technical analysis, SAND has broken out of a parallel channel price pattern, a bullish indicator suggesting potential upward movement. The token now faces resistance at the 200-day Exponential Moving Average (EMA) on its daily chart, a level that will be crucial in determining whether it can sustain its uptrend.

If SAND can close a daily candle above the $0.315 mark, analysts suggest a strong likelihood that it could rally by 30% to reach the $0.415 level in the coming days. Currently trading slightly below the 200 EMA, SAND’s positive momentum is clear. However, its Relative Strength Index (RSI) has reached overbought territory, a technical condition that often precedes a correction. Given the overall bullish sentiment, this correction may be delayed, allowing SAND to continue its upward climb.

The bullish outlook for SAND will hold as long as the token remains above the $0.288 support level. A fall below this level could invalidate the bullish thesis and lead to a potential price dip.

Whale Activity and Rising Open Interest: Key Indicators of Bullish Momentum

On-chain data supports SAND’s bullish outlook, with Coinglass reporting a 5.6% increase in SAND’s Open Interest over the past 24 hours and an additional 2.4% rise in the past four hours alone. This increase in Open Interest signals growing trader interest, further fueled by the breakout from the channel pattern observed in SAND’s chart.

Additionally, data from IntoTheBlock highlights a 248.5% surge in large transaction volumes for SAND within the last 24 hours, pointing to significant activity from whales and institutional investors. As of the latest data, major liquidation levels sit at $0.2911 on the lower side and $0.3246 on the upper side. Coinglass notes that traders are over-leveraged at these levels, creating potential areas of volatility should either of these levels be breached.

Current Price and Market Performance

At the time of writing, SAND is trading around $0.301 after a 3.10% increase in the past 24 hours. This rise coincides with a 21% increase in trading volume, indicating strong participation from both retail and institutional traders as bullish sentiment builds around the asset.

In the days ahead, SAND’s ability to hold above key support levels and break through resistance at the 200 EMA will be crucial for its potential rally. Should SAND maintain its current momentum and continue to attract whale participation, a 30% rally may be within reach, setting SAND up to hit the $0.415 target.



Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.