Why Is Sandbox Going Up Today: What’s Behind The SAND Rise?

Why Is Sandbox Crypto Going Up: What’s Driving The $SAND Price Up?

NFT Space Finally Gaining Traction Amid Market Shift

For a significant period, the NFT space lingered in the shadows as newer trends captured the spotlight in the crypto markets. The surge in popularity of memecoins diverted attention from other sectors, hindering their growth and innovation. However, a recent surge in activity suggests that NFTs are starting to reclaim their position in the industry.

SAND Price Rallies with a Massive Spike in Volume

Over the weekend, SAND token made a significant move with a sharp price surge, often referred to as a "god candle," pushing it back into bullish territory. This rally was accompanied by a dramatic 400% spike in trading volume, jumping from less than $200 million to an impressive $5.20 billion.

This surge reflects a significant shift in trader sentiment. However, the token is now testing a crucial weekly resistance level, which could lead to a potential pullback. Traders are advised to monitor the market closely in this range.

Critical Resistance Zone in Focus for SAND Price

Analyzing the weekly chart reveals that SAND is currently challenging a pivotal resistance zone between $0.8198 and $0.8993. This level has acted as a barrier for the past two years, with the token failing to break through consistently. Successfully clearing this zone would be a key milestone, potentially paving the way for sustained upward momentum.

On-Chain Metrics Signal Bullish Momentum for SAND

On-chain data paints a positive picture for SAND as bullish sentiment continues to grow. According to CoinGlass, open interest has surged by 63%, reaching $203.21 million. This increase signals heightened market activity and further suggests traders are anticipating significant movements in the token's price.

Surge in Short Liquidations Fuels SAND's Upward Momentum

In the past 24 hours, Sandbox experienced a wave of short liquidations amounting to $4.64 million, intensifying buying pressure in the market. This increased activity has significantly contributed to SAND recent price surge, signaling a shift toward bullish sentiment.

What Next for $SAND?  

If the current momentum persists, SAND may challenge the next Fibonacci extension level between $0.90 and $0.93 in the coming days. However, should a pullback occur, the support levels at $0.70 (aligned with the 0.618 Fibonacci retracement) and $0.58 could provide a foundation for stabilization. Looking into 2024, surpassing the $1.00 mark might open the door for SAND to reach the critical $1.50 psychological resistance level.