The price of Sandbox was up 1.75% in the past 24 hours, showing signs of an upward trend after establishing a bullish reversal pattern on Feb. 21. In fact, on-chain stats seemed to indicate that the upward trend is likely to continue on the charts.

A perfect mixture of bullishness

The price of SAND was in range and showed no clear signs of an increase, at least from a technical standpoint. However, due to the consolidating nature of the price action, there is a good chance of a volatile move. Still, such an indication would lack any directional bias.

On the other hand, on-chain stats underlined a much more nuanced prospect for Sandbox. Similarly, the bullish outlook is not a matter of ‘if’ but of ‘when’.

The supply on exchanges is an important metric as it helps determine the potential pressures on the sell side, some of it, if not the whole picture. In the case of Sandbox, if the number of SAND tokens on centralized entities increases, it indicates uncertainty among investors. During a flash crash, these holders are likely to panic and sell their holdings, adding more pressure and steepening the nosedive.

On February 8, the number of SAND rose from 441 million to 542 million, indicating an inflow of approximately 100 million tokens. Since then, the price of SAND has crashed from $4.8 to $2.7, indicating a 43% crash and further indicating the importance of this metric.

Source: Santiment

What else do you need to know

However, this spike in tokens held on exchanges later fell back to the days before the spike. This is a sign that there is not much pressure on the sell side. This development also shows that the bulls may just be ready for a takeover.

Further supporting this thesis is the recent spike in social volume for Sandbox to 11,642 – a new all-time high. This spike also suggested that retail investors are interested in SAND at the current price level.

During slumps, this rebound could serve as a bottom signal, when it is true.

Source: Santiment

The Market Value to Realized Value (MVRV) model seals the deal for the bullish position as it hovers around 20% since Feb. 20. This indicator is used to assess the average profit/loss of investors who have purchased SAND tokens in the past year.

A negative value of less than 10% indicates that short-term holders are at a loss and this is generally where long-term holders tend to accumulate. That is why a value below -10% is often referred to as an “opportunity zone”.

So, investors can expect long-term buyers to drop in and collect SAND at a discount, triggering an uptrend.

Source: Santiment

Combining the three on-chain metrics reveals a perfect brew for the optimistic outlook that will take over Sandbox.

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