The Sandbox price has been under pressure. SAND, its native token, is trading at $4.86, which is about 45% below its highest level on November 25th. Its market capitalization has declined to over $4.47 billion, making it the 38th biggest cryptocurrency in the world.
The Sandbox is a leading blockchain platform backed by Masayoshi Son’s Softbank Group. The platform has several aspects to it. First, it is a play-to-earn platform where people compete for SAND rewards. In the past Alpha season, the developers distributed over 5 million SAND that are currently valued at over $200 million. The Alpha Season 2 will start in the coming weeks.
Second, The Sandbox is a metaverse platform that allows people to buy land and other items. It made headlines last year when a person bought a plot of land for over $4 million. Third, it is a non-fungible token (NFT) play that enables people to buy collectibles.
While The Sandbox is a leading platform, its price has lagged recently as investors take profit. There are worries that the industry will struggle in a high-interest rates environment.
The Sandbox price prediction
The daily chart shows that The Sandbox price soared to an all-time high of $8.76 on November 25th. The coin then started a sharp decline as profit-taking continued. Along the way, the coin found a floor at about $4.110, which was slightly below the 50% Fibonacci retracement level. It also moved below the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the coin will have a bearish breakout in the near term. This view will be confirmed when the price manages to move below the support at $4.11. However, a move above $6 will invalidate the bearish view.