SAND, the native token of The Sandbox, is seeing a resurgence in momentum, breaking out of a falling wedge pattern, a historically bullish chart formation. As of now, the price of SAND has surged by over 10%, currently trading at $0.3995. This breakout has generated renewed interest from traders, drawing the price closer to significant resistance zones. However, despite these bullish signs, the question remains: can SAND maintain this momentum to reclaim critical levels at $0.80 and potentially $1.50?
A breakout from a falling wedge pattern typically signals the beginning of a sustained uptrend, and SAND’s recent price action aligns with this historical trend. The bullish rally is driven by increasing buying pressure, but the path ahead is fraught with challenges. The first key resistance level to break through is $0.80, which has historically capped upward movement. If SAND can push past this level, the next target would be $1.50, a price point where selling pressure could re-emerge.
However, in typical market cycles, price rallies are often followed by corrections. If SAND fails to hold above the breakout zone, a pullback could occur. If the price drops below the $0.35 mark, the bullish setup could weaken, and a retest of the lower trendline would be likely, challenging the integrity of the upward momentum.
The rise in active addresses over the past week is a clear indication that demand for SAND is growing. New addresses have increased by 16.57%, while the number of active addresses has surged by 18.64%. This uptick suggests greater user engagement, often a positive signal for future price movements. Notably, zero-balance addresses have also risen by 18.91%, showing that some users are taking profits, likely as the price rises.
The transaction data also reveals heightened interest from institutional investors. There has been a 500% increase in transactions within the $1 million to $10 million range, signaling significant accumulation by large investors. Additionally, transactions between $100K and $1 million have surged by 244.44%, further supporting a bullish outlook for SAND. On the flip side, smaller retail transactions have decreased, indicating caution from individual traders at current levels.
Exchange reserves, a key metric that tracks the available supply of tokens on exchanges, have dropped by 1.56%, now standing at 484.32 million SAND. This decline suggests that fewer tokens are available for sale on exchanges, potentially reducing the selling pressure. Historically, when reserves fall, it signals that investors are moving their assets into private wallets, anticipating price increases. If this trend continues, it could further support the ongoing rally and drive SAND’s price higher.
SAND’s recent breakout and surge in network activity, coupled with growing institutional interest, signal strong bullish momentum. The next major hurdle is to hold above the $0.80 resistance level. If this is achieved, SAND could target $1.50 in the short term. However, any failure to maintain this momentum could lead to a pullback and test lower levels. While SAND has strong upside potential, its ability to break and sustain key resistance levels will ultimately determine its long-term price trajectory.
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