Russia Moscow 30.05.2021.Logo,screenshot of blockchain nft ethereum cryptocurrency game Sandbox in laptop,mobile phone.Man playing with crypto coins,token sand.Earning digital money.Lands,heroes.
The Sandbox price has crawled back in the past few days. SAND has risen in the past three straight days and is trading at $3.52. This price is almost 40% higher than the lowest level this week. Other metaverse and NFT coins like Decentraland and Enjin have also bounced back lately.
The Sandbox is a leading blockchain project that is in the metaverse industry. In the network, people can buy virtual land and build attractive projects. In the past few months, we have seen the overall prices of assets in the platform jump. For example, last year, a buyer paid over $4 million to buy a parcel of land in The Sandbox.
In the past few weeks, however, The Sandbox price has been under intense pressure as investors worry about its performance in a period of high-interest rates. This week, the Federal Reserve committed itself to implement higher interest rates in a battle against inflation.
Therefore, there are concerns that the overall prices of high-risk assets like virtual land will retreat in a period of high-interest rates.
In addition to virtual land, The Sandbox is also a gaming platform. Late last year, the network launched the highly successful Alpha Season 1 in which over 200k people participated. They won over 5 million SAND worth over $250 million at the time.
The daily chart shows that The Sandbox price has been in a bearish trend in the past few months. It has fallen by 60% from its highest level in 2021. Along the way, SAND price has dropped below the 100-day and 50-day moving averages. The two averages are about to make a bearish crossover.
In the past three days, however, the price has attempted to bounce back. As a result, the Relative Strength Index (RSI) has risen from the oversold level.
Therefore, this rebound seems like a relief rally or a dead cat bounce, meaning that the coin will resume the bearish trend. If this happens, the next key level to watch will be at the 78.6% retracement level at $1.9420. This view will be invalidated if the price moves above $4.
This post was last modified on Jan 28, 2022, 06:31 GMT 06:31