It’s onerous to make sweeping statements about metaverse tokens, since every one is so totally different from the remainder. Whereas alts can generally match one another’s actions, it’s widespread to see one metaverse token thriving whereas one other is struggling to remain over its help stage.
Nonetheless, one metaverse challenge was positively deep within the crimson at press time.
Sanding the tough edges
Santiment’s ‘robust and oversold’ screener put The Sandbox [SAND] on the high of its listing at press time. Why? Altering fingers at $2.36 on the time of writing, SAND dropped by 7.18% within the final 24 hours and misplaced 14.82% of its worth within the final week.
Should you’re nonetheless not satisfied, check out some worth indicators. At press time, the Bollinger Bands had been comparatively nearer collectively, which signifies a drop in volatility. Nonetheless, the latest candles had been involved with the decrease band, which signifies an asset that merchants would possibly see as oversold.
Supply: TradingView
Including to that, the Relative Volatility Index [RVI] got here in under 50, which indicators that future volatility will probably take SAND’s worth additional downwards.
Simply coasting alongside. . .
In line with Santiment information, the 30-day MVRV ratio for SAND got here in under zero, which confirmed that on common, SAND holders had been seeing losses.
Supply: Santiment
Moreover, when SAND volumes, we will see that the metaverse token’s hype interval is lengthy gone, as volumes have been steadily declining since late 2021. This might help clarify why many are selecting to promote their belongings.
Supply: Santiment
Nonetheless, don’t be so fast to brush the SAND off your fingers. Costs and volumes are falling, sure, however so is SAND provide on exchanges. Are traders shopping for the persevering with dip or are whales beginning to accumulate the asset? It’s onerous to inform at this level but when the velocity picks up, it might assist set off a rally once more.
Supply: Santiment
That being mentioned, a rally won’t be really easy for SAND to realize. In its report on The Sandbox, Messari identified that the challenge wanted to do extra in an effort to monetize its options – or danger shedding traders.
The analysis agency famous,
“…83% of consumers select to promote their LAND prior to 3 months after the acquisition. This hints in the direction of revenue taking as a driver for LAND house owners to purchase & promote their belongings.”
