- SAND’s breakout signals bullish momentum, but resistance at $0.80 remains a crucial test.
- Institutional accumulation and falling exchange reserves support a potential sustained rally.
The Sandbox [SAND] has broken out of a falling wedge, a historically bullish pattern, signaling strong momentum. At press time, SAND was trading at $0.3995, up 10.31% in the last 24 hours.
This surge has attracted renewed interest, pushing the price toward critical resistance levels. However, the key question remains: can SAND maintain this momentum and reclaim $0.80 and $1.50?
SAND price action shows a bullish breakout but…
SAND’s breakout from the falling wedge pattern is a strong bullish indicator. Historically, this pattern leads to a sustained uptrend. The current rally suggests increased buying pressure.
The first major resistance lies at $0.80, a level that has previously halted upward movements. If bulls break this zone, the next target is $1.50, where sellers may re-enter.
However, price rallies are often met with corrections. Failure to hold above the breakout zone could trigger a pullback. If the price drops below $0.35, the bullish setup may weaken, forcing a retest of lower trendline support.
Maintaining momentum above current levels is crucial for further gains.
Source: TradingView
Active addresses are rising, signaling growing demand
Network activity provides insight into SAND’s potential price action. Over the past seven days, new addresses have increased by 16.57%, while active addresses have jumped by 18.64%.
This growth suggests more users are engaging with the network, often a bullish sign for future price movements. Additionally, zero-balance addresses have risen by 18.91%, indicating some users are cashing out.
Transaction activity confirms institutional interest
A closer look at transaction data shows a 500% increase in $1M–$10M transactions, signaling strong interest from large investors. Additionally, transactions in the $100K–$1M range have surged 244.44%, reinforcing a bullish outlook.
These shifts suggest that institutional players are accumulating SAND, often a sign of potential long-term price appreciation. Conversely, smaller transactions have declined, meaning retail traders may be hesitant to buy at current levels.
Source: IntoTheBlock
Exchange Reserves are falling, indicating…
Exchange Reserves, a key metric for tracking available supply, have decreased by 1.56% to 484.32M SAND. This decline indicates fewer tokens are on exchanges, reducing selling pressure.
Historically, such trends align with price recoveries as investors move assets to private wallets, expecting higher prices.
However, external market conditions will influence whether this trend continues. If reserves drop further, it may signal continued accumulation, pushing SAND higher.
Source: CryptoQuant
Conclusion: Can SAND sustain its rally?
SAND has shown strong bullish signals, with rising active addresses and increased institutional interest supporting its uptrend. If it holds above $0.80, the next stop could be $1.50.
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However, failure to maintain momentum may lead to consolidation or a retest of lower levels. Therefore, while SAND has strong upside potential, breaking key resistance levels will determine its long-term trend.
