Good things come to those who HODL! Are you still holding The Sandbox (SAND) or looking for an entry point? Read more to find out!
As you can see below, since the bottom in June, SAND has only been outperformed by Axie Infinity (AXS) which is another metaverse game token. You can see that there is a clear trend here, however, Bitcoin (BTC) has shown a clear weakness recently. The question is if the trend will continue?
Let’s dive into the charts and see.
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SAND/USDT in a 1D Chart
SAND/USDT in a Weekly Time Frame
The problem with charting a parabolic coin like SAND is that it has very little price history, consequently, as you can see on the weekly chart it is hard to know when the price will find support levels, as there are very few higher time frames levels to go off. It is usual for the price to have a cool off, especially after a week where it has risen by over 80%. Although the price has already bounced off of the level, we could potentially see a move down to $4.7, especially with Bitcoin (BTC) showing weakness, it is possible that it will drag SAND down with it. The main thing we do not want to see is a bearish engulfing candle on the weekly. This would signal a continuation to the downside. However, if SAND looks bullish against BTC though we could potentially see a price decouple, so let’s have a look at the SAND/BTC chart.
SAND/BTC 1D Chart
As I explained above, it is harder to analyze the higher time frame charts due to the fact there is very little price discovery. You can see above that price formed a 5-day order block up at the highs. This is because buyers and sellers were trying to figure out what fair value for SAND was. There was more supply than demand up at the highs so the price is now dropping, the next level for a potential reversal is 0.000101 sats. This would be a great place to flip the level and form a higher low. After the BTC drop price has reacted incredibly well on the 0.000101 level and buyers bought it up/held it. This shows that there is still a high amount of demand for SAND and people believe that it will outperform BTC in the foreseeable future
SAND/AXS and SAND/MANA 1D Chart
SAND has two main metaverse competitors, AXS and MANA. All three of them have had an amazing run this year, but you must analyze them to see which one is most likely to outperform.
SAND/MANA upside momentum looks to be slowing down. After breaking out of the order block, the price has dropped. The is a need to reclaim this level to expect more upside. Otherwise, the price will return to the bottom of this range.
With BTC still having a bearish market structure. All altcoins will likely consolidate at this point whilst waiting for BTC to decide its next move. This year's January has been Ethereum’s best performing month, and with altcoins consolidating, will we see another strong move of the altcoin market in January 2022?
Summarizing Everything Explained Above
SAND is one of the leading metaverse projects in the crypto industry right now. Sponsors, such as Adidas and Snoop Dogg, have helped add fundamental value to it. Since the bottom, the price of SAND has moved up by 2,000% making it one of the best performing crypto asset
SAND has been in a parabolic uptrend for more than five weeks now; however, it has just started to consolidate. This is a favorable situation for bulls because it allows strong players to accumulate more coins before another move up.
- In the short term, Bitcoin may outperform SAND. However, if SAND can hold the support level at 0.000101 sats, it is likely that there will be another move up against BTC, potentially allowing SAND to outperform it.
- The SAND/AXS chart looks to have formed a cup and handle formation, if we can get a breakout from the handle, it could be inferred that SAND will outperform AXS.
- In the SAND/MANA chart, the price has clearly slowed down. There are two possibilities here: Either the price is consolidating or MANA will outperform SAND in the short term.
With BTC looking weak here, it is sensible to be exercising caution. However, if alt prices consolidate in December, there is a potential of a bull run in January.
It is sensible to react to the price structure that forms, especially with uncertainty that exists in the market at this point.