The downward winds surrounding the Metaverse have intensified. The price of the popular metaverse coin Sandbox (SAND) also fell to an all-time low on September 13. Meanwhile, the giant crypto exchange Binance Sandbox has decided to stop NFT Staking. Amidst these developments, on-chain data trends reveal how the SAND price may move. Crypto analyst Ibrahim Ajibade predicts the next moves of the altcoin project.
SAND whales sold $2 million worth of tokens in 5 days
Last Friday’s Binance delisting announcement appears to have triggered a bearish sentiment among Sandbox whale investors. On-chain data shows that following the news, whales stopped their week-long buying trend and started selling. According to data from Santiment, whales with a balance of 1 million to 10 million SAND were holding a total of 281.7 million SAND as of September 7. However, the chart below shows that as of September 13, this figure had fallen to just 277.4 million SAND. This means that whales have sold 7.3 million SAND since the Binance announcement.
SAND Whale Wallet Balances. Source: SantimentConsidered at the current price of $0.29, the 7.2 million SAND recently sold by the Sandbox whales are worth approximately $2.2 million. Historically, whale trading activities have often moved SAND markets significantly. Therefore, if the ongoing selling trends continue, it is possible for the altcoin price to drop further in the coming weeks.
No new demand for altcoin despite low prices!
As you follow from Kriptokoin.com, Sandbox price is currently at an all-time low of $0.29. But despite the heavily discounted prices, SAND failed to generate a significant increase in new demand. In fact, the daily Network Growth chart below shows that Sandbox registered 200 new wallet addresses this month. Only 146 new wallet addresses were created on the Sandbox network at the close of September 13. This represents a 37% decline compared to the 231 addresses recorded on August 29, when the altcoin price briefly retested at $0.35.
Sandbox Network Growth. Source: SantimentA decline in network growth typically means that the underlying token is struggling to attract new demand. In particular, the SAND NFT Staking program allows many SAND holders to derive benefits and passive income from their assets. Binance NFT Marketplace will close this window to SAND on September 26. Therefore, it is possible that the SAND Network will now become even less attractive to new investors. In summary, whales continue to generate selling pressure amid declining network growth. Therefore, the altcoin price is likely to approach zero in the coming weeks.
SAND price prediction: Altcoin may slide to $0.10!
Due to weak market demand, most SAND token holders are left underwater. Therefore, it is possible for the Sandbox price to approach zero in the coming weeks. From an on-chain perspective, if it loses $0.27, SAND is likely to see a prolonged decline towards $0.10. In/Out of the Money Around Price (IOMAP) data, which shows the entry price distribution of current SAND holders, also confirms this thesis. This data shows that after the $0.27 level, SAND price did not have any significant support until it reached $0.10.
As you can see below, 513 addresses have purchased 17.2 million SAND for a minimum of $0.27. There is a slim chance that HODL will trigger a recovery amid current weak network demand. So, if the support wall collapses, the altcoin price will likely drop towards $0.10.
The Sandbox GIOM data. Source: IntoTheBlockStill, Sandbox bulls may stage an unexpected comeback if the SAND price rises above the $0.50 level. However, 17,380 addresses have purchased 602.7 million tokens for a minimum of $0.45. It is possible that Binance’s delisting and weakening market demand may push them to close their positions early. In this case, it is possible that the SAND price will retreat. However, if this resistance level fails, SAND price is also likely to rise above $0.50 again.
59628
