SAND is likely to continue its rise thanks to sustained demand. There are price levels that investors must consider to obtain short-term profits.
NFT and metaverse projects may experience renewed interest in 2023, and thus a need to explore their potential. One such project is The Sandbox, which recently made a major development-related update. More importantly, its native SAND token started this month on an optimistic note.
A recent alert from WhaleStats revealed that SAND concluded the week by joining the list of the top 10 most purchased tokens by ETH whales. This was seen in the last 24 hours, and it highlighted the existing demand that has fueled SAND in recent days.
WhaleStats tweeted the announcement like this:
“SAND @TheSandboxGame now on top 10 purchased tokens among 100 biggest #ETH whales in the last 24hrs. Check the top 100 whales here: https://whalestats.com (and hodl $BBW to see data for the top 5000!).”
The increasing demand for ETH whales is quite an interesting observation, considering the latest performance of SAND. The token achieved a 24% rally in the first week of January.
Demand for ETH whales increased the chances that SAND would extend its bullish momentum into another week. This outlook, though, could be affected by potential profit-taking, as the price approaches profit-taking zones.
Playing in the Sand
SAND was trading at $0.45 and an extended lead may push SAND toward the $0.50 range. The latter could be taken as an important price zone for the token because it will come into contact with the 50-day moving average.
The price will also be within the 50% Relative Strength Index (RSI) level, if not above. This retest is more likely to increase the possibility of short-term profit-taking, and therefore, the possibility of a bearish pullback.
Buying pressure from ETH whales may boost investor confidence, and support a prolonged rally. In addition, The Sandbox recently announced the upcoming release of a new metaverse game called Game Maker 0.8. This announcement may also have contributed to favorable investor sentiment.
Can SAND Maintain Its Bullish Momentum?
SAND’s ability to continue to rally ultimately depends on whether it can get enough demand. Its supply distribution metric reveals that most of the major address categories continue to contribute to the bullish pressure. This observation supported the expectation of continued bullish momentum.
There are other signs that support the same result. For example, the main addresses supply recently registered a considerable increase, confirming that the whales have been buying. Additionally, The Sandbox kicked off January with a spike in development activity.
These observations may further strengthen investor sentiment in favor of the bulls. However, investors should be aware of the profit-taking zones mentioned above.
By Audy Castaneda
