The Sandbox price has bounced back in the past few days. SAND is trading at $7.78, which is about 37% above the lowest level on Friday. The price is slightly below its all-time high of $8.46 while its market capitalization has surged to more than $7 billion.
The main reason why The Sandbox price is rising is because of the Sandbox Alpha. This is an event that starts today that will see players win 1,000 SAND and 3 NFTs.
Going by the current price, it means that winners will pocket more than $7,000. The price is also rising because of the overall rebound of cryptocurrencies as the Omicron risks subside. The total market value of cryptocurrencies has jumped to more than $2.7 trillion.
Still, there are two main reasons why SAND price will retreat. First, there is a likelihood that investors will sell the Alpha news. Investors who bought the coin because of the news on Sandbox Alpha will likely exit and take profit. We experienced this situation recently when Polkadot price crashed after the parachain auctions.
The Sandbox price forecast
The second reason why I expect SAND to retreat is that the price seems to be forming a double-top pattern. On the four-hour chart, we see that the price is approaching the key resistance level at $8.46. Also, it has formed a chin at $5.7697. In most cases, a double-top pattern is usually a bearish sign.
Therefore, while the overall trend is bullish, we cannot rule out a situation where the price declines below the chin of the double-top pattern at $5.76. This price is about 25% below the current level. This view will be invalidated if the price moves above the upper side of the double-top pattern.
