- SAND broke out of its falling wedge, signaling potential bullish momentum
- On-chain data pointed to rising activity and confidence in SAND’s price action
The Sandbox [SAND] recently broke out of its long-standing falling wedge pattern, which could signal what could be the start of a major bullish trend. SAND was trading at $0.2931, having risen 12.06% at the time of writing, and has seen a surge in both market interest and trading volume lately.
In fact, 24-hour trading volume increased by 126.45% – a sign of renewed excitement among traders and investors alike. Will this breakout be strong enough to maintain the altcoin’s momentum?
SAND Map Analysis – What does this outbreak mean?
SAND’s price chart confirmed a strong break above the falling wedge pattern, which has kept the token in a downtrend for months. Moreover, the Relative Strength Index (RSI) rose to 62.38 – a sign of bullish strength. The Bollinger Bands also widened around the price candles.
These indicators together implied higher volatility, which often follows such breakouts. Consequently, the price of SAND seemed to enter a new upward phase. However, the token will need sustained buying pressure to confirm its longer-term direction.
Source: TradingView
Increase in active addresses and number of transactions – Bullish support?
Additionally, on-chain data from CryptoQuant supported SAND’s recent price rise. The number of active addresses has increased by 1.54% over the past 24 hours at press time, bringing the total to 40.66k. This increase in network activity is crucial as it can be interpreted as rising interest in the token.
Moreover, the total number of transactions increased by 2.1%, further reinforcing this trend. Simply put, the rise in user engagement suggested that SAND’s rally may not have been purely speculative, but was backed by strong fundamentals.
Source: CryptoQuant
SAND exchange reserve analysis – Lower selling pressure?
Exchange reserves for SAND have fallen by 1.06% over the past 24 hours, indicating that there are now fewer tokens for sale on exchanges.
Consequently, this drop in available supply implied that sellers withdrew their tokens from exchanges and likely opted to hold on to them. This behavior often precedes further price increases, mainly because it reduces immediate selling pressure on the market.
Source: CryptoQuant
Open Interest Spike – Are Traders Confident?
Open interest for Sandbox rose 28.26% to reach $44.51 million. Such a large increase suggested that more traders are opening new positions – a sign of confidence in SAND.
All in all, the rebound in Open Interest, combined with SAND’s price action, implied growing optimism about sustainable profits.
Source: Coinglass
Realistic or not, here is the market cap of SAND in terms of BTC
Can SAND continue its rally?
The altcoin’s breakout, supported by strong technical data and positive on-chain metrics, signaled a potential bullish reversal.
However, continued buying pressure will be key to keeping this momentum alive. Therefore, while SAND is promising, traders should proceed with caution amid the market volatility.