SAND/USD daily chart

SAND, the token powering The Sandbox’s gaming ecosystem, is up 90% since the beginning of the year and trading at $0.7178 at the time of writing. Investors within the ecosystem have been preparing for a massive token unlock.

The Sandbox price spiked to $0.94 late last week, although the uptrend stalled before reaching $1.00. Support roughly at $0.6865 came in handy to stop overhead pressure from wiping out all the progress made over the last six weeks. If support at $0.6865 holds, buyers will have an opportunity to fight for another breakout, this time aiming for highs above $1.00.

The Sandbox Price Climbs 6.5% Following Massive Token Unlock

Sandbox is a highly sought-after metaverse project boasting $1.2 billion in market capitalization. It comes second after Internet Computer (ICP) and before Decentralized among metaverse-focused crypto networks.

The team at The Sandbox released more tokens into the market on 14 February. Investors are expecting approximately 372.5 million SAND to join the circulating supply, which currently stands at 1.5 billion tokens.

This new token unlock is one of the largest, making up 12.4% of the network’s total supply – worth roughly $268 million at the current exchange rate. These periodical unlocks are expected to continue, considering The Sandbox has a total supply of 3 billion tokens.

(2) Lookonchain on Twitter: “According to @Token_Unlocks, 372.57M $SAND ($259M) will be unlocked tomorrow, accounting for 12.4% of the total supply. 1. Here is a thread of $SAND. – $SAND Tokenomics – Unlocking of $SAND – Noteworthy addresses” / Twitter

Some crypto projects prefer to release more supply into the market over a long time to cater to the needs of stakeholders, which are mainly incentives. Historically, token unlocks have triggered volatility with the price dropping following such events.

As mentioned, The Sandbox has a long way to go until all the 3 billion tokens are released into circulating supply. The token unlock schedule is expected to continue until February 2025, which means there are four more unlock events with the next coming in August. The rest of the token unlock schedules will take place in February 2024, August 2024, and February 2025.

The Sandbox Price Spikes Against All Odds

Analysts in the cryptocurrency market expected The Sandbox price to sink deeper in the red due to the token unlock event on Tuesday. However, SAND is not only in the green but trading 6.5% up in 24 hours.

The token sits on top of a solid confluence support at $0.6865 formed by the 50-day Exponential Moving Average (EMA) (in red) and the 100-day EMA (in blue). Bulls are backing the integrity of this support area to nurture a sustainable uptrend and beat the expectations for a pullback.

SAND/USD daily chart

Remember, The Sandbox is still working toward a falling wedge pattern’s 88.15% breakout target, likely to place it above $1.00. Resistance at $0.94 coupled with profit booking prematurely cut short the first breakout from the wedge.

The Sandbox price is required to uphold support at $0.6865 at all costs to protect the fragile investor confidence, especially with Tuesday’s token unlock intensifying overhead pressure. Otherwise, SAND may resolve to seek refuge at $0.60 and worse at $0.50.

On the upside, a daily close above $0.70 could encourage more buyers to increase their exposure to SAND as they look forward to a potential uptick above $1.00. Bulls must purpose to bring down the seller congestion at the 200-day EMA (in purple) to shield SAND from bearish advances.

What May Stand In The Way of The Sandbox Price Rally

An evaluation of the SAND’s technical outlook shows influence from sellers has not been purged entirely. The Moving Average Convergence Divergence (MACD) upholds the downtrend with a sell signal on the same daily timeframe chart.

It would be prudent if traders waited for a buy signal from the momentum indicator (MACD) before going long on SAND. The call to buy The Sandbox will manifest with the MACD line in blue crossing above the signal line in red.

The Money Flow Index (MFI) shows more investors are considering either booking profits or ditching SAND for other altcoins. Like the Relative Strength Index (RSI) the MFI tracks The Sandbox’s trend while incorporating volume to gauge the level of inflows and outflows.

A consistent drop from the overbought area into the neutral region suggests outflows outweighs inflows. In other words, there is more money getting out of SAND markets than money coming in.

SAND/USD daily chart

That said, investors cannot rule out the possibility of another pullback – this time below the confluence support at $0.6850 just yet. Some of the key levels to watch is a daily close above the immediate support at $0.70 – likely to encourage more buyers to return to the market and build momentum for the next recovery phase beyond $1.00.

As mentioned before, breaking and holding below $0.6850 would culminate in another dip to $0.60 or extended to $0.50.

Insight from IntoTheBlock based on on-chain data presented in the IOMAP model paints a grim picture of The Sandbox price. At least three huge cohorts of investors purchased SAND tokens in the ranges: of $0.7156 – $0.7313, $0.7313 – $0.7549, and $0.7549 – $0.7778.

The first cohort running from $0.7156 to $0.7313 hosts 2.92k addresses that previously purchased 83.5 million SAND. The second cluster holds 4.91k addresses that scooped up 69.38 million SAND while the last cohort holds 2.95k addresses that previously bought 77.62 million SAND.

The Sandbox IOMAP Model

It would be a daunting and challenging task for bulls to weaken all these three robust seller congestion zones. Hence, traders should tread carefully, aware of the bearish cloud hovering above The Sandbox price.

On the flip side, the lack of strong support areas leaves The Sandbox price vulnerable to potential advances from bears. Therefore, the importance of support at $0.6865 cannot be overemphasized. If broken, SAND will find the first pit stop at $0.60 and the second at $0.50.

Buy The Sandbox Now.

The Sandbox Alternatives To Buy Today

Before buying SAND, investors may want to consider some of the best crypto presales in the market. A dedicated team of experts reviews various tokens every week to come up with a list of the best altcoins to buy as you build your crypto portfolio.

The web3 gaming sector has been catching momentum with new entrants like Meta Masters Guild (MMG) set to change the future of the space. Unlike existing play-to-earn ecosystems like The Sandbox, Axie Infinity, and Decentraland, MMG strives to remove all barriers to entry so that users can focus on playing the games they like.

Users have numerous ways through which they can earn with this up-and-coming ecosystem through activities such as game development, supply of in-game items, and content creation among others.

The Meta Masters Guild presale is in the last stage, with $4.46 million raised so far. Investors who wish to catch this token in the presale must move fast before the event closes in two days.

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