Thanks to the recent hype in the metaverse and gaming, The Sandbox project has been one which has been ruling the roost. Soon after Facebook’s parent company was rebranded as ‘Meta’ on 28 October 2021, SAND saw a near 700% rally in the matter of a month – creating huge wealth in the process.
However, in line with the market-wide sell-offs, SAND too saw a significant correction all through December 2021 and early January 2022.
But towards the end, a while before other coins began recovering, SAND began its recovery and broke out of its 50-period moving average. From around $3, it almost touched $5 – recovering by nearly 66% in two weeks. It decisively broke out of the $4.2-resistance zone and at press time, was trading just above it.
However, the region between $4 and $5.5 has served as a congestion zone so a major recovery from hereon would require significant stimulus.
SAND/USDT | Source: TradingView
Nevertheless, the current situation does allow a unique opportunity to buy in. Even on-chain metrics for SAND seem to suggest the same to a large extent. Judging from historical performances, the MVRV-Z score for SAND suggests it is not too overvalued yet and hence, provides an attractive entry point with respect to its price.
MVRV-Z Score | Source: Santiment
The NVT ratio for SAND also seemed to point towards a similar direction as the MVRV-Z score. Looking at its movement with respect to its price, one can infer that it is reasonably well valued. And hence, a good opportunity to ride the running train. Returns from this point on won’t be extraordinary, but this would keep the boat afloat.
NVT Ratio | Source: Santiment
To add to that, social dominance for SAND also saw a major uptick in the past couple of days with interesting news
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