Journalist
Posted:
- SAND was approaching the stage of disbelief, which could lead to a price increase.
- The value of the token may rise to the $0.65 region in the short term.
Although the sandbox [SAND] has risen 32% in the past 30 days, the cryptocurrency seemed to be in a depression phase, analyst Ali Martinez revealed. The market’s depression phase comes around the end of a bear market.
During this period, market participants do not expect any significant price increase.
However, this phase is usually followed by a phase of disbelief, where prices start to rise. For SAND, Martinez believed that investors should not overlook the potential.
His position stemmed from the idea that the token was at a psychological stage that could predict a price increase.
#The sandpit appears to be in the ‘depression phase’, a crucial point in the typical market psychological cycle. This could be a good time for investors to consider a takeover $SANDas the market may be poised for a future upturn. pic.twitter.com/Sd8B3d2fct
— Ali (@ali_charts) December 25, 2023
The analyst’s opinion could be an eye-opener for investors who have been looking at other stories in the market.
Through most of 2023, cryptocurrencies with fundamentals around AI and Real World Assets (RWAs) appear to have captured investors’ attention.
The Sandbox falls into the Metaverse category. Unfortunately, this part of the market has received the same treatment as those mentioned above.
But given the current state of SAND, it might be time to start looking in that direction. A look at the volume showed that the token could have a positive outlook in the near term.
At the time of writing, The Sandbox volume had increased to 246.24 million. This implies an increase in the number of SAND transactions.
AMBCrypto also deciphered that the increase in volume is a signal of investor confidence and optimism around the cryptocurrency. Another bullish sign was the increase in the number of active addresses.
Source: Santiment
According to data analyzed of Santiment, SAND’s active addresses jumped 24 hours. Active addresses show the daily level of speculation surrounding a token.
Therefore, the rise suggests that SAND was one of the tokens that investors looked to to benefit from the price movement.
AMBCrypto also looked at the price action. Notably, the SAND/USD 4-hour chart showed a bullish candle, which sent the price to $0.59. This move confirmed how bears may not be able to match the token’s rebound in the future.
The Exponential Moving Average (EMA) was another metric that AMBCrypto took into account.
At the time of writing, SAND’s 9-day EMA (blue) had also passed the 20-day EMA (yellow). This position suggested a bullish bias for the token. The Relative Strength Index (RSI) has also risen.
Read The Sandbox [SAND] Price forecast 2023-2024
Although the reading at 71.54 indicated that SAND was overbought at the time of writing, this may not stop the uptrend.
Source: TradingView
Therefore, the price of SAND may fall below $0.59. However, a move above $0.65 is a solid option for the token’s value in the short term. So investors may want to consider accumulating SAND before the stock turns the corner.