The Sandbox: SAND presents a buying opportunity, but here’s the caveat

ambcrypto.com:

It’s hard to make sweeping statements about metaverse tokens, since each one is so different from the rest. While alts can sometimes match each other’s movements, it’s common to see one metaverse token thriving while another is struggling to stay over its support level.

However, one metaverse project was definitely deep in the red at press time.

Santiment’s ‘strong and oversold’ screener put The Sandbox [SAND] at the top of its list at press time. Why? Changing hands at $2.36 at the time of writing, SAND dropped by 7.18% in the last 24 hours and lost 14.82% of its value in the last week.

If you’re still not convinced, take a look at some price indicators. At press time, the Bollinger Bands were relatively closer together, which indicates a drop in volatility. However, the most recent candles were in contact with the lower band, which indicates an asset that traders might see as oversold.

Source: TradingView

Adding to that, the Relative Volatility Index [RVI] came in below 50, which signals that future volatility will likely take SAND’s price further downwards.

According to Santiment data, the 30-day MVRV ratio for SAND came in below zero, which showed that on average, SAND holders were seeing losses.

Source: Santiment

Furthermore, when looking at SAND volumes, we can see that the metaverse token’s hype period is long gone, as volumes have been steadily declining since late 2021. This can help explain why many are choosing to sell their assets.

Source: Santiment

However, don’t be so quick to brush the SAND off your hands. Prices and volumes are falling, yes, but so is SAND supply on exchanges. Are investors buying the continuing dip or are whales starting to accumulate the asset? It’s hard to tell at this point but if the speed