SAND, the native token of The Sandbox — a blockchain-based gaming platform owned by Animoca Manufacturers — inched greater on Nov. 23, constructing on its beneficial properties made throughout November to achieve one other file excessive.
The price of SAND rose to $5.64 after swelling 16.25% intraday, but it retraced some of those gains to trade at $5.54 at the time of writing. The move took the month-to-date and year-to-date gains of The Sandbox’s token to nearly 260% and over 14,700%, respectively, with its market capitalization crossing above $5 billion, making it the 41st-largest coin in the crypto sector.
Many catalysts behind the SAND price rally
This month’s exuberance was in part attributable to The Sandbox’s announcement that it will open up part of its metaverse through its multi-week play-to-earn Alpha occasion starting Nov. 29 at 1:00 pm UTC.
Intimately, the blockchain startup confirmed that it might choose a gaggle of 5,000 gamers to earn as much as 1,000 SAND (presently price $5,540) and three nonfungible tokens (NFT) as they spend time throughout Sandbox’s 18 digital experiences.
Prepare for The Sandbox Alpha!
Launching November twenty ninth
Anybody can expertise the Alpha hub and three experiences
5,000 Alpha passes giving entry to content material, NFT, and 1,000 SAND!
— The Sandbox (@TheSandboxGame) November 16, 2021
Moreover, the current bout of shopping for throughout SAND spot markets — which noticed its worth achieve over 37% and 40% in opposition to the U.S. greenback and Bitcoin (BTC) within the earlier 24 hours — got here on hopes of a possible collaboration between The Sandbox and sports merchandise giant Adidas.
On Monday, Adidas discussed on Twitter the potential to build a so-called “adiVerse” with support from The Sandbox.
— adidas Originals (@adidasoriginals) November 22, 2021
The tweet had obtained almost 1,450 retweets and 4,400 likes on the time of writing.
RSI divergence in play
Regardless of strong fundamentals, SAND dangers rallying into a bull trap, as its price trends show clear deviations from its relative strength index (RSI).
Specifically, the RSI typically returns higher values when the market rises and lower values when it falls. Occasionally, the RSI and the market move in an opposite direction, leading to so-called RSI divergences.
That stated, a falling RSI and a rising market present a bearish divergence. Notably, because the starting of November, SAND has been forming an analogous RSI divergence, an indication that the momentum within the transfer to the upside has been slowing down.
That doesn’t imply that the bull pattern is over, but it surely alerts to a potential short-term pullback transfer. The next chart reveals the potential entry and exit targets for the classes forward, based mostly on the Fibonacci retracement graph between the $0.17 swing low and $8.72 swing excessive.
A pullback upon testing the 0.382 Fib stage at $5.45 might see SAND return to its subsequent assist line on the 0.5 Fib stage, close to $4.45. The identical line has acted as resistance throughout SAND’s upside makes an attempt between Nov. 18 and 22.
Conversely, a continued transfer above $5.45, accompanied by an increase in volumes, might open the chance for SAND to check $6.70 — on the 0.236 Fib stage — as its subsequent upside goal.
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