Current situation: extension of the decline and market scanning
The bearish trend has followed Sandbox after it fell 4% in 24 hours. It is currently trading at $0.602 with a 51% drop in trading volume. In the past seven days, SAND has also shined in the cryptocurrency gaming industry boom, recording a 75% increase.
Technical signals: Bollinger Bands movement and indicator direction
The continued expansion of the Bollinger Bands and the increase in liquidation size go hand in hand to announce the increase in volatility. On the four-hour chart of altcoins, the expansion of the Bollinger Bands is clearly visible. Earlier this week, SAND broke through the upper Bollinger Band with strong bullish momentum, but at the time of writing, the price has fallen back to the middle Bollinger Band, and the buying pressure has obviously eased. The relative strength index (RSI) has slipped from the overbought zone to 53, and the RSI line is approaching below the signal line, which strongly indicates that selling behavior dominates the price fluctuation trajectory.
Key support: defense line and potential risk points
Buyers seem to be defending the immediate support at $0.58. If the selling continues and this support fails, SAND is likely to fall to the lower Bollinger Band at $0.501.
Liquidation Effect: Increased Volatility and Position Changes
Coinglass data reveals that in just four days, more than $44 million was liquidated between leveraged short and long traders on the Sandbox. These forced liquidations, whether selling or buying operations, push volatility to even higher levels. At the same time, this has also had a significant impact on open interest, which at press time stood at just $168 million after a 6% drop in 24 hours, a sure sign that traders have no intention of opening new positions on SAND. While the cooling in derivatives market activity may calm volatility somewhat, it could also drive the SAND into consolidation territory.
Active tracking: address dive and market sentiment cooling
The lack of new purchases for SAND can be attributed to a sharp drop in the number of active addresses. In the past three days, the number of active addresses has dropped from 3,809 to 1,821. This sudden drop may suggest that market sentiment has quietly cooled due to the lack of new purchases. If this demand shortage continues to spread, SAND may be stuck in the doldrums.
Outlook: Pressure imbalance and trend turning point
The lack of buyers to buffer SAND's seller pressure is likely to cause the token to fall further. After the RSI broke below the signal line and generated a sell signal, the upward trend has weakened. If buyers flood into the market again, the trend is expected to reverse. Traders should also be highly alert to the risk of a break below the lower Bollinger Band, as this is likely to further weaken market sentiment and trigger a deeper drop in prices.
The information provided in this article is for informational purposes only and does not constitute advice of any kind.