Is The Sandbox (SAND/USDT) a buy or sell after spiking 31%?
The Sandbox price advanced more than 30% over the last 24 hours.
SAND is the native token of the decentralised gaming platform.
It allows users to create, build, buy and sell digital assets in the form of a game.
On Tuesday, The Sandbox token (SAND/USDT) price rallied more than 31% to extend the current 7-day gains closer to 60%. SAND is the native token of the blockchain-based virtual gaming platform, which allows users to create, build, buy and sell digital assets in the form of a game.
The platform was launched in 2011 by Pixowl by merging decentralised autonomous organisations (DAO) with non-fungible tokens (NFTs) to create a thriving gaming community. The main purpose is to introduce decentralisation to mainstream gaming successfully.
What’s driving the rally?
Sandbox is enjoying strong tailwinds from the growing popularity of the Metaverse and the NFT gaming marketplace. The platform received a significant boost at the start of the month after raising $93 million in a funding round led by SoftBank’s vision fund.
As a result, SAND has now grown to become the 41st largest cryptocurrency with a market cap of about $4.86 billion, according to CoinMarketCap.
Technically, The Sandbox seems to be trading within a sharply ascending channel formation in the intraday chart. As a result, the SAND/USD has rallied deep into overbought conditions, creating an opportunity for a technical pullback.
Therefore, investors could target downward profits at about $4.82, or lower at $3.99, while $6.02 and $6.71 are crucial resistance levels.
In summary, although SAND seems to be trading deep into overbought conditions, investors may target rebound profits shortly after retesting the key support levels.