SAND price is down by 4 per cent in today’s trading session. The token also looks poised to continue its downward trend throughout the session. The drop comes after a strong three-day bull run that, at one point, had resulted in a 20 per cent price gain.
What is SAND?
SAND is the native in-game currency of the Sandbox, a play-to-earn metaverse platform. The Sandbox project allows players to build, own, and monetize their gaming experience. The platform also allows user-generated content ecosystem production. This allows them to secure copyright ownership for their user-generated content through blockchain and smart contracts.
Despite recent months recording slow growth in the price of SAND, the metaverse platform has grown in popularity for the past few years. Most of this growth has been due to the project’s combination of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), which has allowed the platform to create a decentralized platform for a thriving gaming community.
SAND Price Prediction
The Sandbox’s growth in popularity for the past few months has not translated to the markets, where SAND prices have been in an aggressive bearish trend for months. In today’s trading session, the bearish trend continues, with SAND dropping by 4 per cent. Today’s downward move is also a reversal of the recent three consecutive bull run that, at some point, had resulted in a 20 per cent price gain.
Looking at the chart below, we can see the prices recently set a new price low at $0.88. The chart also shows the prices hitting the lower trend line of a descending channel. However, the prices fail to move past the lower trend line resulting in the current sideways market, which looks like a bearish flag formation.
Therefore, my SAND price prediction is the prices will continue trading sideways for the next few trading sessions. There is a likelihood that the current bearish flag pattern to continue for days. However, I expect the prices to resume the bear market when the flag formation is done. Therefore, it is highly likely that we will see the prices trading below the $0.88 support level.
However, should the prices trade above $1.5, then both my sideways and bear move analysis will be invalidated. Instead, it will indicate a trend reversal. The move will also be a setup where we will see SAND trading above $2.