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It’s exhausting to make sweeping statements about metaverse tokens, since every one is so totally different from the remaining. Whereas alts can typically match one another’s actions, it’s widespread to see one metaverse token thriving whereas one other is struggling to remain over its help degree.
Nevertheless, one metaverse undertaking was undoubtedly deep within the pink at press time.
Sanding the tough edges
Santiment’s ‘sturdy and oversold’ screener put The Sandbox [SAND] on the high of its listing at press time. Why? Changing hands at $2.36 on the time of writing, SAND dropped by 7.18% within the final 24 hours and misplaced 14.82% of its worth within the final week.
In case you’re nonetheless not satisfied, check out some value indicators. At press time, the Bollinger Bands had been comparatively nearer collectively, which signifies a drop in volatility. Nevertheless, the latest candles had been in touch with the decrease band, which signifies an asset that merchants may see as oversold.
Supply: TradingView
Including to that, the Relative Volatility Index [RVI] got here in beneath 50, which indicators that future volatility will probably take SAND’s value additional downwards.
Simply coasting alongside. . .
In response to Santiment information, the 30-day MVRV ratio for SAND got here in beneath zero, which confirmed that on common, SAND holders had been seeing losses.
Moreover, when SAND volumes, we are able to see that the metaverse token’s hype interval is lengthy gone, as volumes have been steadily declining since late 2021. This may help clarify why many are selecting to promote their property.
Supply: Santiment
Nevertheless, don’t be so fast to brush the SAND off your palms. Costs and volumes are falling, sure, however so is SAND provide on exchanges. Are traders shopping for the persevering with dip or are whales beginning to accumulate the asset? It’s exhausting to inform at this level but when the pace picks up, it might assist set off a rally once more.
Supply: Santiment
That being stated, a rally won’t be really easy for SAND to attain. In its report on The Sandbox, Messari identified that the undertaking wanted to do extra as a way to monetize its options – or threat shedding traders.
The analysis agency noted,
“…83% of patrons select to promote their LAND before 3 months after the acquisition. This hints in the direction of revenue taking as a driver for LAND homeowners to purchase & promote their property.”
