Tuesday, December 7, 2021

YOU MAY ALSO LIKE


SAND, the native token of The Sandbox — a blockchain-based gaming platform owned by Animoca Manufacturers — inched greater on Nov. 23, constructing on its positive factors made throughout November to achieve one other file excessive.

The price of SAND rose to $5.64 after swelling 16.25% intraday, but it retraced some of those gains to trade at $5.54 at the time of writing. The move took the month-to-date and year-to-date gains of The Sandbox’s token to nearly 260% and over 14,700%, respectively, with its market capitalization crossing above $5 billion, making it the 41st-largest coin in the crypto sector.

SAND/USDT daily price chart. Source: TradingView

Many catalysts behind the SAND price rally

This month’s exuberance was in part attributable to The Sandbox’s announcement that it will open up part of its metaverse through its multi-week play-to-earn Alpha occasion starting Nov. 29 at 1:00 pm UTC.

Intimately, the blockchain startup confirmed that it will choose a bunch of 5,000 gamers to earn as much as 1,000 SAND (at present price $5,540) and three nonfungible tokens (NFT) as they spend time throughout Sandbox’s 18 digital experiences.

Moreover, the latest bout of shopping for throughout SAND spot markets — which noticed its worth achieve over 37% and 40% towards the U.S. greenback and Bitcoin (BTC) within the earlier 24 hours — got here on hopes of a possible collaboration between The Sandbox and sports merchandise giant Adidas.

On Monday, Adidas discussed on Twitter the potential to build a so-called “adiVerse” with support from The Sandbox.

The tweet had acquired almost 1,450 retweets and 4,400 likes on the time of writing.

RSI divergence in play

Regardless of stable fundamentals, SAND dangers rallying into a bull trap, as its price trends show clear deviations from its relative strength index (RSI).

Specifically, the RSI typically returns higher values when the market rises and lower values when it falls. Occasionally, the RSI and the market move in an opposite direction, leading to so-called RSI divergences.

Related: Metaverse and blockchain gaming altcoins rally while Bitcoin looks for support

That mentioned, a falling RSI and a rising market present a bearish divergence. Notably, because the starting of November, SAND has been forming an identical RSI divergence, an indication that the momentum within the transfer to the upside has been slowing down.

SAND/USDT every day worth chart that includes bearish RSI divergence. Supply: TradingView

That doesn’t imply that the bull development is over, however it alerts to a attainable short-term pullback transfer. The next chart reveals the potential entry and exit targets for the classes forward, based mostly on the Fibonacci retracement graph between the $0.17 swing low and $8.72 swing excessive.

SAND/USDT every day worth chart that includes Fib stage targets. Supply: TradingView

A pullback upon testing the 0.382 Fib stage at $5.45 may see SAND return to its subsequent assist line on the 0.5 Fib stage, close to $4.45. The identical line has acted as resistance throughout SAND’s upside makes an attempt between Nov. 18 and 22.

Conversely, a continued transfer above $5.45, accompanied by an increase in volumes, could open the likelihood for SAND to check $6.70 — on the 0.236 Fib stage — as its subsequent upside goal.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes threat, and it is best to conduct your personal analysis when making a call.