Sandbox [SAND] has seen increased activity recently, with 9.04 million SAND ($3.28 million) deposited on Binance in the past 13 hours, totaling 19.05 million SAND ($5.90 million) over 26 days. As of the time of writing, SAND is trading at $0.3465, down 2.20% in the past 24 hours.
However, the bullish on-chain signals and key technical levels seem to indicate that a significant move is imminent.
SAND tests key resistance levels
SAND's price has been consolidating near the key resistance level of $0.375, which has historically been a crucial area. The Bollinger Bands are narrowing, reflecting reduced volatility and suggesting a potential breakout is imminent. Successfully closing above $0.375 may pave the way for a rebound to $0.50, but failing to hold could push the price back to the support level of $0.34.
As of the time of writing, the stochastic RSI is at 71.87, indicating that SAND is approaching overbought levels. A potential downward cross could lead to a short-term price pullback, providing traders with an opportunity to re-enter before attempting resistance levels again. Therefore, the next few trading days are crucial for determining SAND's trajectory.
The on-chain bullish signals for SAND inspire confidence
However, on-chain metrics remain an optimistic factor for SAND. The net network growth rate increased by 0.39%, indicating that user adoption has been steadily rising. Additionally, as of the time of writing, 1.67% of SAND holders are 'in profit', suggesting that despite the recent price drop, positions are still in a profitable state.
The concentration metric shows an increase of 0.04%, highlighting a stable balance in token distribution between large holders and small investors.
Meanwhile, large transactions surged by 13.10%, indicating increasing interest from institutional investors and high-net-worth individuals. This data may bolster confidence in the long-term potential of altcoins and possibly signal stronger upward momentum.
Short preferences reveal contrarian investment opportunities
As of the time of writing, the long-to-short ratio shows that 52.72% of traders hold short positions while 47.28% hold long positions, resulting in an overall ratio of 0.8968.
While this suggests a slightly bearish market, such situations often create opportunities for a short squeeze. If SAND breaks through the resistance level, the liquidation of short positions could accelerate the price increase.
Are altcoins ready to break out?
The bullish on-chain signals and technical setup for Sandbox indicate an increasing likelihood of breaking above $0.375.
Although the stochastic RSI suggests a potential pullback in the near term, strong on-chain metrics and institutional interest support a long-term bullish outlook. If key resistance levels are broken, SAND could rebound to $0.50 in the coming days.
