The Sandbox (SAND) Faces Potential Price Drop Amidst Bearish Market Conditions
The price of SANDBOX (SAND) has recently surged to $0.27, sparking hope among investors. However, with 98% of current holders in a loss-making position, the cryptocurrency could be on the verge of another price drop. Year to date, SAND prices have plummeted by 56.22%, signaling a challenging market environment for the coin.
The Current State of Sandbox
In the last seven days, SAND prices have seen a modest 6% increase. Despite this, on-chain data reveals a concerning trend, with the short/long term gap in MVRV standing at -35.56%. This metric, which tracks market profitability, suggests that short-term holders may be at an advantage compared to long-term holders in the current market conditions.
Historically, when the MVRV indicator for Sand falls between -40.74% and -75.26%, the cryptocurrency enters a bearish cycle. This is a key signal for potential market downturns, and investors should proceed with caution.
The Bearish Signs for SAND
Additionally, the bear and bull indicators for SAND highlight a lack of confidence among traders. Over the past week, there have been 28 more downtrends than uptrends, indicating a prevailing bearish sentiment in the market.
Technical analysis further supports this outlook, with the Balance of Power (BoP) dropping to -0.64. This suggests that sellers have taken control of the market, signaling a bearish trend for SAND.
Price Forecast and Potential Scenarios
Looking ahead, if selling pressure persists, SAND could see a further decline to $0.20. However, a strong uptrend could see the coin retesting the $0.30 level. It is crucial for investors to monitor these key levels and market dynamics to make informed decisions.
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