Sandbox (SAND) Price Drop Possible as Metaverse Hype Dwindles

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The Sandbox price has remained below $0.65 since March 24. Dwindling active users and whales booking profit are critical stumbling blocks. How will the SAND price react? 

Sandbox price and network traction have floundered since its recent local high in February 2023. On April 3, the Sandbox team announced new partnerships ahead of its upcoming Mega City 3 launch later this month. Amid declining hype around virtual worlds, The Sandbox is set to partner with over 40 brands in an attempt to trigger its next growth phase. 

Inconsistent Daily Active Users Slows The Sandbox Resurgence

In recent weeks, Sandbox (SAND) price growth slowed as the metaverse project struggled to maintain 1,000 active users daily. According to the data provided by Santiment, Sandbox has failed to attract 1,000 daily users since March 31. The chart below shows that as of April 6, only 730 users were recorded. 

Sandbox (SAND) Price vs. Daily Active Users. April 2023, Source: Santiment

The historical data shows that Sandbox’s price often increases when active users interacting on the network exceed 1,000. The SAND price could remain in the doldrums if Sandbox cannot attract new users and sustain the mind-share of its existing gamers. 

Similarly, the mild SAND sell-off among a cohort of crypto whales adds credence to the bearish outlook. According to Santiment, whales holding balances of 1,000,000 to 10 million coins have offloaded 49 million SAND tokens. The chart below shows how they started selling once the price dropped below $0.60 on March 27. 

Sandbox (SAND) Price vs. Whale Supply Distribution. April 2023, Source: Santiment 
Sandbox (SAND) Price vs. Whale Supply Distribution. April 2023, Source: Santiment 

This whale cohort has now sold $31 million worth of SAND as of April 7. If this sell trend continues, they could flood the market with huge supplies of tokens and cause the price to crash further. 

SAND Price Prediction: Another drop below $0.60 is Likely

Going by the price distribution of current holders, SAND could drop below $0.50 if its current $0.60 support breaks. IntoTheBlock’s Global In/Out of Money Chart shows it could have considerable support around $0.59. At this range, 21 addresses that purchase 441,000 tokens could stand firm to shore up the Sandbox token price. 

Otherwise, the next significant support will be $0.43, where 22,000 wallet addresses have bought a whopping 1 billion tokens.

Sandbox (SAND) Global In/Out Money data. April 2023, Source: IntoTheBlock.
Sandbox (SAND) Global In/Out Money data. April 2023, Source: IntoTheBlock

Yet, Sandbox Bulls could invalidate the negative stance if the SAND price can exceed $0.71. For that to happen, it must break the resistance of 13,500 addresses holding 13 million tokens. If that resistance is breached, then enter a tear toward $0.83.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.





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