- SAND’s bullish pennant breakout targets $1, supported by strong price action above $0.62.
- Reduced foreign exchange reserves and bullish on-chain metrics strengthened the case for upward price momentum.
The Sandbox [SAND] has sparked optimism among traders as it broke above a critical resistance at $0.62, forming a bullish pennant on the daily chart.
This breakout suggested a potential rally towards the $1 mark, driven by increasing market momentum and improving on-chain activity.
At the time of writing, SAND was trading at $0.6308, reflecting a gain of 8.60% in the past 24 hours. However, the price faces upcoming resistance levels that could test its ability to sustain this upward move.
SAND Price Action Analysis
SAND’s recent price movement has shown consistent respect for the bullish pennant pattern, confirming $0.62 as a crucial level.
The breakout above this resistance has generated buying interest, indicating potential for upside continuation.
Therefore, the next major target for SAND is at $0.75, with $1.00 being the psychological level to watch.
On the other hand, a correction could test support at $0.43, especially if bullish momentum falters. Additionally, traders should watch for consolidation, which can precede another breakout.
Source: TradingView
Signals in the chain emphasize the growing interest
On-chain metrics further reinforce SAND’s bullish outlook. Net network growth is up 0.30%, indicating steady user adoption, while 0.83% of holders are now in the money, reflecting profitable positions.
However, the concentration of large owners has fallen slightly (0.04%), indicating limited profit-taking.
Additionally, large trades are up 10.96%, indicating increased activity among institutional traders.
These figures indicate growing interest, but the slight decline in concentration underlines the importance of closely monitoring distribution trends.
Source: IntoTheBlock
Technical indicators correspond to bullish prospects
Technical indicators provided additional confirmation of SAND’s upside potential. The RSI stood at 49 at the time of writing, indicating neutral momentum with a bullish tilt.
Additionally, the Bollinger Bands are narrowing, indicating a possible breakout as price volatility decreases.
If SAND maintains this momentum, an explosive move to the upside could follow. However, failure to hold support above $0.62 could lead to a temporary retracement before another attempt to push higher against resistance.
Source: TradingView
Analysis of foreign exchange reserves indicates reduced selling pressure
Foreign exchange reserves data showed a bullish picture, with SAND’s reserves down 1.51% in the past 24 hours. This decline indicates that there are fewer tokens available to trade as holders move coins between exchanges.
In addition, reduced supply on the exchanges often reduces selling pressure, creating a favorable environment for price increases.
Therefore, continued declines in reserves could further support the ongoing rally.
Source: CryptoQuant
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Can SAND reach $1?
SAND has strong potential to reach $1.00, supported by the bullish pennant breakout, improved on-chain metrics, and reduced selling pressure.
However, to maintain this momentum it will be necessary to overcome key resistance levels and maintain broader market optimism. The coming days will be critical in determining SAND’s trajectory.
