The sandbox price topped $ 5.00 for the first time on Tuesday, as investors flock to play to win Metaverse projects. A rush to buy in the Asian hours caused the value of Sandbox (SAND) to drop to $ 4.36 billion. At the time of writing, the SAND token is trading at $ 4.7980 (+ 18.72%), making the project the 42nd largest cryptocurrency behind Tezos (XTZ).
Blockchain-based game projects like Sandbox and Decentreland (MANA) have become investor favorites in recent weeks. Without a doubt, Facebook’s decision to change its name to META and switch to the Metaverse has strengthened the case for the asset class. As a result, the SAND token has risen nearly 600% since Facebook’s October 28 announcement and + 8800% since the start of the year.
To add a bit of perspective, The Sandbox was worth $ 23 million on January 1, $ 548 million on March 29, $ 747 million on October 27, and over $ 4 billion today. The apparent dilemma for investors is whether the price of the sandbox will continue to rise in the long term or collapse in the short term? The answer could be both.
SAND Price Analysis
The daily chart shows that the SAND token is experiencing extreme bullish momentum. However, the price action caused the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators reaching excessive levels.
Despite this, the Sandbox price seems likely to continue its parabolic movement for the time being. However, at some point we could see a violent correction. In my experience, extreme two-way price action often leads to mean reversion.
Therefore, although the price may continue to rise in the short term, it will only increase the downside risk for late stage buyers. Based on this, traders may wish to wait for an entry point that carries less risk.
The sandbox price table (daily)
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