SAND Technical Analysis: Price Gains Momentum Owing to the Launch of SandBox Alpha

Ankita  |  Nov 24, 2021

Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy, and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), Sandbox (SAND) creates a decentralized platform for a thriving gaming community.

Let us see how the technical analysis of SAND will move.

Past Performance of Sandbox

After a sudden increase in the price 20 days ago, the SAND chart has not seen a significant decline since then. A general uptrend can be seen, as the price has increased 600% in the last month. Today, it has made a new all-time high at $6.36.

Opening on November 17, 2021, at $3.25, the following week witnessed an increase of 64.92%. On November 23, 2021, SAND closed at $5.36. The current 24-hour high is $6.36, while the current 24-hour low is $4.88.

TradingView Chart

SAND Technical Analysis

The parabolic increase in the SAND price continues even today. The current trading price is $6.1667, which is 15.25% higher than the previous day’s close.  This rally is expected to continue as there are no signs of a trend reversal yet. However, let us look at what the indicators have to say.

Looking at the OBV graph, we see that the trend line has remained inclined for a long time. The buying pressures are dominating the selling pressures. This is driving the price further upwards.

RSI is currently at 84.88%, which is a high level. It means that the SAND coin is overbought and hence overpriced. This is a signal that a price correction may be seen in the coming days. However, this is not a strong signal as the trend may remain in the overbought region for a while.

The fast line and the slow line in the MACD graph are positive. Also, there is no divergence from the price chart. This is confirming the ongoing uptrend.

Sandbox is launching Sandbox Alpha on November 29, 2021. The Sandbox Alpha is an open multi-week play-to-Earn event starting November 29 at 1 PM UTC, in which players will have the opportunity to explore The Sandbox Metaverse for the first time, through 18 experiences created by The Sandbox’s teams.

Also, Adidas has hinted at the Sandbox for a collaboration, via Twitter, which is also contributing to the price hike.

Factors Affecting Sandbox's Near Price

The Sandbox is one project that has gained some impressive traction. As of early November, it had more than 500,000 registered wallets and 12,000 virtual landowners on its platform. It was also able to raise $93 million in a Series B financing and has had some high-profile names such as Snoop Dogg engage with the platform.

After facing little resistance at the pivot at $4.33, the price has smoothly crossed the next Fib level at $5.74. Now, it is heading towards the Fib level at $7.16.

Thus, the indicators are showing that the traders may take a long position, as there are no strong signals for a reversal. Also, the Sandbox Alpha event is likely to push the price further up. The traders may keep their target at $7. Meanwhile, if the price trend reverses, they may keep a stop-loss at $5.

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