Bitcoin has dropped by 8% since October 28th. In comparison, The Sandbox token is up by a whopping 639% in the same time period. From 0.75$, the price of SAND token is currently $5.58. It reached an all-time high of $5.69 a few hours, and it may continue to ascend further. While the growth has been monumental, in this article, we will be analyzing its sustainability over the next few weeks.
SAND token has divergence in play
The divergence in play is bearish. After reaching a market top of $3.20, SAND registered correction down to the $2 range. Following the drop, the asset managed to rally back to a new market high but trading volumes have continued to decrease. It suggests that buying pressures at the current price range isn’t as strong as it was at $3.20.
In addition to that, based on on-chain fundamentals, SAND investors are reaching a state of FOMO.
According to SAND’s Network Realized Profit/Loss chart, investors might be pulling out profits again, as previously carried out at $3.2. At press time, the NPL value was $61.73 million, and profits were previously pulled around the $70-$80 million range.
However, one positive factor is that rate of activity has not declined. 24-hour active addresses ranged at previous high levels indicated that investors were involved during the bullish rally.
Is the bullish rally over though?
SAND is the native token of the Sandbox, which is a blockchain-based gaming platform. After the recent commotion surrounding Metaverse development, the likes of SAND, ENJ, and MANA have all registered significant gains.
Moreover, it might not be the end for SAND. On 29th November, Sandbox will open up part of its metaverse via its multi-week play-to-earn Alpha event. According to the announcement, a group of 5,000 players will be selected to earn up to 1,000 SAND (currently worth $5,540) and three nonfungible tokens (NFT) as they spend time across Sandbox’s 18 virtual experiences.
While bullish pressure would eventually subside, the momentum is on the SAND token’s side at the moment. Sky is the limit for the gaming token unless a majority of investors pull-out.