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!
The metaverse has been a hot topic for the last few months, especially with Mark Zuckerberg publicly shilling it as part of his new venture. This has allowed metaverse coins to pump as new investors are seeing value in the industry. The Sandbox (SAND) has been a direct beneficiary of this. After bottoming in June, SAND has gone on a run of more than 5,000% (from top to bottom). There is no surprise as they have big partners, such as Snoop Dogg and Adidas, helping to provide fundamental value towards the coin.
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
Although SAND has been on a parabolic run in recent months, the price looks to be slowing down on the 1D chart. It is currently in ‘no man’s land’ with buyers observing the BTC moves before buying any altcoin. Bullish price momentum has been broken with the price breaking down below a higher low. In a bullish scenario, you would like to see a bounce up to the trendline here.. This would enable us to hold the bullish structure and penetration could mean new all-time highs.
The level of $4.5 must act as strong support. As we can see, the first test of this level was bought up incredibly fast, which is a good sign. If you are afraid of buying this level, ask yourself: if this was a 5-minute chart, would I buy it? This is a great way of removing confusion about trades, as there will likely be some panic at this level due to the substantial drop from the highs (%40+). The price could easily consolidate between $4.5 and $7.7 before more upside. This would allow buyers to establish a fair value and accumulate before moving up further.
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/AXS looks like it is forming a cup and handle formation. The price has found support on the red bullish order box below. This means that SAND will likely outperform AXS for the foreseeable future. However, if the price revisits this level and fails to flip resistance into support, AXS will 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.
Trend
The trend in the crypto industry is currently metaverse coins, with some having market caps over a billion dollars. However, it must be noted that there is always a rotation between different trends in this market. Therefore, when the trend changes, you need to make sure that you are not invested in metaverse coins. Since they are cooling off after a massive parabolic move, people who are still in profit will likely not hesitate to dump some coins. It is, therefore, smart to be cautious whilst looking for an entry into a coin like SAND. The good news is that trends are never forgotten, and when prices start to move up again, investors will look to get into the trending coins, adding loads of buying pressure.
Seasonality
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.
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