The SAND token prices undergo correction, will bears take over?

The Sandbox (SAND), one of the best performing altcoins in the crypto world, represents the metaverse industry.

Previous reports from TheCoinRise show that this month has been all about metaverse, with The Sandbox getting its share of traction.

Sandbox started Nov 21 at $4.21 and rose as high as $4.46. What followed was a bearish drop, due to which the prices dropped to a daily low of $3.84. As of 5:11 pm GMT, the SAND/USDT trading pair stands at $3.94. 

As per data from CoinMarketCap, the trading volume of SAND tokens dropped to $1.5 billion, down by 11.31%. On the other hand, the market capitalization of the cryptocurrency is at $3.5 billion. The cryptocurrency’s all-time high was witnessed on Nov 18, and now, prices are down by 16.01% from that level. 

SAND token price analysis on the daily chart 

The daily chart provides a great history of prices for any currency or stock. For the SAND token, the daily chart shows tremendous gain in trading volume and prices as well. 

The current resistance for the prices stands at $4.45, which the bulls could not break through. Alternatively, the current support stands at $$3.57.

Currently, the 50-day and 100-day Moving Averages remain below action, indicating a long-term bullish sentiment. These levels will act as important support levels if prices fall below.

On the other hand, the price action broke out a couple of times from the upper end of the Bollinger Bands, leading to a rally followed by a bearish retracement. If the price action continues to follow this price, we will see the SAND token break through the current resistance in the near future.

Chart by TradingView

The RSI levels remain in the overbought zone. But, the gradient is negative as selling pressure increases. The traders are cashing out their profits.

The MACD indicator shows a histogram full of green bars as the MACD line (the blue one) progresses above the signal line (orange line). However, the two lines are closing in, and if we witness a bearish crossover, prices will surely turn bearish.

Chart by TradingView

Data from Dapp shows an increase of 19.14% in the number of holders and a 65.52% surge in active addresses in the past seven days. As per TheCoinRise, the recent investment raised by the firm also added fuel to SAND’s fire.

Chart by Dapp

Also, as reported recently by TheCoinRise, the announcement of Sandbox Alpha is a major reason for the bullish rally that the token is currently experiencing.