Sandbox (SAND) has reclaimed the $0.50 barrier after dropping below $0.48 earlier this week. Multiple on-chain gauges now point to a prolonged rally in the SAND rally towards $0.60. Will This Positive SAND Price Prediction Be Validated?
On May 22, Paris Hilton announced launch From the set of Avatar on The SandBox metaverse prior to her concert in Los Angeles. Coincidentally, there has been a 6% uptick in the SAND price and a positive improvement in some important on-chain metrics since that announcement.
What are the chances that the sustained rise in SAND prices will develop into a prolonged rally?
Sandbox network activity skyrocketed
This week, The Sandbox saw a huge spike in the number of active users interacting on the network. the Daily Active Addresses (DAA) The metric collects all wallet addresses that interact and perform transactions on a given day.
The diagram below shows that Sandbox DAA It increased by 34%, from 488 on May 21 to 656 on May 24.
As we saw above, the number of active users on the Sandbox has increased since Paris Hilton’s May 22nd announcement, although other factors could be involved.
Turning to the historical correlation between previous sand price hikes and gains in the DAA, holders can expect more gains in the coming days.
Whale investors are bullish
Furthermore, there has been a significant uptick in whale backlogs across the Sandbox Network since May 22. This also adds credibility to the bullish forecast for SAND prices.
The red line in the chart below shows how a whale pool of 1-10 million tokens started buying around May 22nd.
Since then, they have instantly added 6.92 million SAND tokens to their wallet balances.
At the current market price of $0.51, these newly added $6.92 million tokens are worth around $3.5 million. When crypto whales invest such a huge amount in a couple of days, it indicates that they are in a position to make some upward movement.
In short, a spike in network activity and a wave of accumulation among whale investors could push Sands above $0.60.
Sand Price Prediction: The bulls are eyeing $0.60
IntoTheBlock’s in/out the money IOMAP data indicates that the SAND must break above $0.53 for the bulls to gain firm control. However, 1,740 investors who bought 39.5 million tokens at an average price of $0.53 could slow the rally.
However, with the current positive market dynamics shown above, the bulls are likely to find the momentum to push towards $0.60.
On the other hand, the bears could invalidate the sandbox’s bullish price prediction if it breaks below the critical $0.50 support level.
But the potential demand wall from 2,000 investors who bought 15.8 million bonds at an average price of $0.50 could support the price.
If this support level cannot hold, the SAND price could drop to $0.45.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.