- SAND bull pennant breakout targets $1, supported by strong price action above $0.62.
- The reduction in foreign exchange reserves and the chain’s bullish moves have strengthened the case for upward price momentum.
THE Sandbox (SAND) sparked optimism among traders by surpassing critical resistance at $0.62, forming a bullish pennant on the daily chart.
This breakout suggests a potential rally to the $1 mark, driven by growing market momentum and improving on-chain activity.
At press time, SAND was trading at $0.6308, reflecting an 8.60% gain over the past 24 hours. However, the price faces upcoming resistance levels that could challenge its ability to sustain this upward movement.
SAND Price Action Analysis
SAND’s recent price movement demonstrated continued respect for the bullish pennant pattern, confirming $0.62 as the pivot level.
The break above this resistance triggered buying interest, indicating potential for continued upside.
Therefore, SAND’s next key target lies at $0.75, with $1.00 being the psychological level to watch.
On the downside, a correction could see support at $0.43 tested, particularly if the bullish momentum weakens. Additionally, traders should watch for consolidation, which could precede another breakout.
Source: TradingView
On-Chain Signals Highlight Growing Interest
The on-chain metrics further strengthen SAND’s bullish outlook. Network net growth increased by 0.30%, signaling steady user adoption, while 0.83% of holders are now “in the money,” reflecting profitable positions.
However, the concentration of large operators decreased slightly by 0.04%, indicating minor profit-taking activity.
Additionally, large trades jumped 10.96%, reflecting increased activity among institutional traders.
These metrics suggest growing interest, but the slight decline in concentration highlights the importance of closely monitoring distribution trends.
Source: In the block
Technical indicators align with bullish outlook
Technical indicators provided further confirmation of SAND’s upside potential. The RSI was 49 at press time, indicating neutral momentum with a bullish tilt.
Additionally, Bollinger bands are narrowing, signaling a potential breakout as price volatility compresses.
If SAND maintains this momentum, an explosive upward move could ensue. However, failure to hold support above $0.62 could lead to a temporary retracement before another attempt to reach resistance levels.
Source: TradingView
Analysis of FX reserves signals reduction in selling pressure
Foreign exchange reserves data paints an optimistic picture, with SAND reserves falling 1.51% over the past 24 hours. This decline indicates that fewer tokens are available for trading, as holders move coins off exchanges.
Additionally, reduced supply on exchanges often reduces selling pressure, creating a favorable environment for rising prices.
Therefore, a continued decline in reserves could further support the ongoing recovery.
Source: CryptoQuant
Is your wallet green? View the SAND Profit Calculator
Can SAND reach $1?
SAND has strong potential to reach $1.00, supported by its bullish breakout of the pennant, improving on-chain metrics, and reduced selling pressure.
However, maintaining this momentum will require overcoming key resistance levels and maintaining broader market optimism. The next few days will be crucial in determining the trajectory of SAND.
