Sandbox (SAND) price action went negative and was dragged below the key EMAs recently. SAND price delivered the bearish cues on the chart as the asset seemed to struggle.
Following the broader market selloff in the last 24 hours, SAND crypto underwent significant selling pressure. It has been eyeing to take support near the 52-week low cluster of $0.2500.
A rounding top formation was exhibited, and the token has experienced a rejection from the 50-day EMA mark. This led to a follow-on selloff this week.
Its chart structure looks bearish, as the token declined by over 40% in the last two months.
Over the last two weeks, SAND stabilized after a 20% decline. Notably, the token had plummeted to a monthly low of $0.2800, displaying bearish cues.
The token was priced at $0.2879 with an intraday drop of 2.90%. This exhibited a bearish move on the chart. Notably, it was ranked at 93 with a market cap of $726 Million and a total supply of 3.24 Billion.
Sandbox (SAND) Price Action and On-Chain Metrics Outlook
Amidst the bearish trend, Sandbox holders were searching for stability around the crucial support zone of $0.2500. This level was crucial as it was where buying interest could increase, potentially preventing the price from falling further.
It has formed lower highs and lower lows, a sign of a bearish trend, and dragged below the key moving averages. To reverse the bearish trend, SAND must break the immediate resistance mark of $0.3800 on a closing basis.
Meanwhile, the lower trading volume during the week’s selloff implied a weak selling interest. This means the token might find support soon.
Moreover, the MACD line was below the signal line, and the zero line implied the bearish momentum.
Technical indicators suggested a bearish sentiment, and the RSI line dropped to the oversold trajectory. This implied a sustained selling pressure. However, it has not shown extreme oversold condition, which could hint at a strong bounce.
Social Metrics Show Uptick: What Does that Mean?
Per the Santiment data, the social dominance value grew significantly and soared over 12% this week. It implied a dramatic rise in demand among investors and crypto members.
Since July 2024, the development activity curve exhibited a significant rebound. It noted a rise, moving across the zero line. This signified that developers have been working effortlessly for the ecosystem’s growth.
OI Data and Future SAND Price Performance Analysis
Notably, the Open Interest (OI) increased by 3.78% to $35.97 Million. Its funding rate dropped below the zero line, at -0.00104%, implying a bearish outlook.
Moderate fluctuation and significant downtrends were seen in SAND’s price action. The increasing demand for metaverse and the use of SAND for this purpose might lessen the effect of volatility.
Undoubtedly, the token was under bearish influence. It doesn’t mean that it does not have the capability to rebound. Its long-term indicators still looked neutral.
SAND token looked oversold and could trigger a rebound shortly if it held the support around the $0.2500 mark. This means that accumulation is imminent, and the token might reclaim its gains soon.
Breaching the low mark of $0.2500 would lead to a next bearish leg toward $0.2000, confirming the continuation of a downtrend.
 price lost momentum and fell below the key support of $0.30, confirming the seller strength, it may revisit the 52week low.){kind=link}