Sandbox price is fast approaching a vital support zone that is likely to absorb incoming selling pressure and trigger a bull rally. The bullish outlook for SAND is supported by on-chain statistics, suggesting a similar outlook.
A short but optimistic future
The Sandbox price has crashed about 68% in the past four months and is currently sliding downward approaching $1.53 to $2.44. A bounce from this level is likely to witness a surge in buying pressure, triggering a small rise for the token.
In the case of Sandbox price, the bounce-off is not the first issue, but approaching Simple Moving Averages (SMAs) is. Therefore, the advantage for SAND is extremely high and strong and stable buying pressure will be needed.
A quick response from the demand zone is likely to propel SAND by 28% before retesting the 200-day SMA at $3,179. If you break this barrier, the price of Sandbox could rise to its next target of $3.49.
In a very bullish case, SAND is likely to make its way to the 100-day SMA at $4.28. In total, this run-up would be a 60% gain and it is likely that Sandbox price will swing high and return.
Source: TradingView, SAND/USDT
This exponential run-up to the sandbox price is supported by the 30-day Market Value to Realized Value (MVRV) model, which hovers at -19%. 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 holders are losing out in the short term and are generally located where long term holders tend to accumulate. That is why a value below -10% is often referred to as an “opportunity zone”.
Over the past year, the SAND price has seen a significant reversal in its price as the MVRV hits -18%. In fact, the price of Sandbox has jumped 25% to 50% twice in the past four months as the 30-day MVRV hit -18% or lower, adding credibility to the bullish thesis.
SAND 30 Day MVRV Chart
As things look up for Sandbox’s price, chances are these prospects could turn sour if bears take over. A breakdown of the $1.53 support level will invalidate the demand zone and therefore the bullish thesis described above.
In such a case, SAND could slide lower and find stable support levels until buyers on the sidelines decide to step in and give the bull rally another try.
This post Should Investors Wait For SAND’s 60% Comeback Amid Market Capitulation?
was published first on https://ambcrypto.com/should-investors-wait-for-a-60-comeback-of-sand-amidst-market-capitulation/
