The Sandbox saw nearly 100 million inflows into exchanges in recent days.
The token unlock event happening in a few days could be a motivating factor.
The value of the Sandbox [SAND] increased significantly at the start of 2023. Nevertheless, the price movement has slowed down recently and a review of several crucial parameters revealed that some key events for the game token could be taking shape.
Read The Sandboxes [SAND] Price Forecast 2023-24
Inflow is rising
A significant amount of SAND was moved to exchanges at press time, based on data gathered from Glassnode. That much could be deduced from the observation of the NetFlow indicator and the clear increase in exchange flows.
The outflow was dwarfed by the inflow, which rose to almost 82 million on the observed chart. The data suggested that investors were now transfer their tokens to various exchanges on a large scale to sell them.
Source: Glassnode
A zigzag on SAND
According to a daily time frame analysis by The Sandbox, there were some lows. The token was up 1% at the time of writing and was trading at around $0.71. In addition, the value of the token had fallen by 8% prior to the trading session.
However, according to the Relative Strength Index (RSI), SAND’s strong bull trend had eased somewhat. An upward trend, albeit weak, was indicated by the RSI line, which was just above 50.
Source: Trade View
According to the statistics above, there were certain concerns about the steady decline in the value of SAND and significant inflows into exchanges. A review of the unlock data provided some explanations for the recent price movement, but it may not have been the only factor at play.
Token Unlocks data suggested that The Sandbox will release 372,570,278 tokens within five days. As a percentage of the total, this token is worth 12.419%. The inflow of funds into exchanges may reflect investors’ expectations of a token price drop once the locked token becomes available.
Overvalued SAND presents an opportunity
How profitable is SAND now as unlocking approaches and investors look for profit? The 30 365-day Market Value to Realized Value Ratio (MVRV) indicated that sellers could make a profit at this point. The 365-day MVRV was 48.60%, while the 30-day MVRV was 12.03%.
Source: Sentiment
The dump may seem like negative news for SAND’s price movement, but there could be upsides as well. SAND is overvalued on the 365-day MVRV; a decline would provide a great opportunity to get into the SAND position.
How much are 1,10,100 SANDs worth today?
Moreover, in a new development, The Sandbox also announced a partnership with the Saudi Arabia Digital Government Authority on February 7. According to Borget Sebastien, COO of The Sandbox and co-founder, the relationship is meant to activate the Metaverse.
Partnerships and announcements like this could help SAND climb back up, especially with the upcoming unlock and likely price drop.
This post The sandpit [SAND] sees large inflows in stock markets: good news for investors?
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