The Sandbox (SAND) continued its upward trend, reaching a new yearly peak of $0.86 earlier today. However, it has since retreated 14% to trade at $0.75 at press time.
Despite the recent surge, technical and on-chain indicators suggest that the long-awaited $1 price target remains unlikely for now. Here’s why.
Long-term holders of The Sandbox take profits
SAND’s price surge over the past week has prompted its long-term holders to move their previously dormant tokens. This is reflected in the token’s rising age-of-stake indicator, which measures the movement of long-held coins. According to Santiment, this has soared to a two-month peak of 33.19 billion on Sunday (24).
The increase in this indicator is significant because long-term holders do not usually move their coins. Therefore, when they do, especially during periods of rising prices, it indicates a change in market trends. Significant spikes in the age consumed during a rally like this suggest that long-term holders are selling, possibly leading to increased selling pressure.
SAND Age Consumption. Source: Santiment
In fact, the increase in SAND’s Exchange Flow Balance over the past 24 hours confirms the selling activity. According to Santiment, this indicator, which measures the net difference between the amount of an asset sent to exchanges and the amount withdrawn from exchanges in a given period, has increased by 162%.
This reflects an increase in the amount of SAND tokens being deposited on exchanges. This signals that holders are preparing to sell, potentially leading to downward price pressure.
SAND Exchange Flow Balance. Source: Santiment
SAND Price Prediction: Metaverse Token Is Overbought
On the daily chart, SAND’s Relative Strength Index (RSI) is at 87.18, indicating overbought conditions. The RSI measures whether an asset is oversold or overbought, and ranges from 0 to 100. Values above 70 signal that the asset is overbought and could face a decline, while values below 30 suggest that it is oversold and could recover.
With an RSI of 87.18, SAND is signaling overbought conditions, putting it at risk of a pullback in the near term. Should a downturn occur, its price could drop to $0.72. Increased selling pressure at this level could push SAND further down to $0.61, taking it further away from the $1 target.
SAND Price Analysis. Source: TradingView
On the other hand, SAND price could reclaim its yearly high of $0.86 if the selling pressure subsides. This will invalidate the above bearish thesis.
The article SAND Leads Gains, But $1 Remains Distant appeared first on BeInCrypto Brasil.
