Sandbox token SAND rallies 260% in November ahead of play-to-earn metaverse launch

SAND, The Sandbox’s native token — a blockchain-based gaming platform that Animoca Brands owns — climbed higher on Nov. 23. It continued its gains from November and reached a new record high.

After rising 16.25% intraday the price of SAND was $5.64. However, it recovered some of those gains and traded at $5.54 as of this writing. The month-to date and year-to – sandbox’s token gained nearly 260% and more than 14,700% respectively. The coin’s market capitalization surpassed $5 billion making it the 41st largest in crypto.

Daily price chart for SAND/USDT Source: TradingView

There are many catalysts that triggered the rally in SAND’s price

This month’s enthusiasm was partly due to The Sandbox’s announcement of opening up a part of its metaverse via its multiweek play-to earn Alpha event, which began Nov. 29 at 1:00 UTC.

The blockchain startup said that it would choose a group from 5,000 players to receive 1,000 SAND (currently worth $5540) and three nonfungible tokens, NFT, as they spend their time in Sandbox’s 18 virtual experiences.

The Sandbox Alpha is coming! The Alpha hub will be open to all, starting November 29th. There are three experiences, 5,000 Alpha passes that give access to content, NFT and 1,000 SAND. Get all details below https://t.co/63iAl5MMmS pic.twitter.com/OiXmbAWYN2
— The Sandbox (@TheSandboxGame November 16, 2021

The recent buying spree across SAND spot markets, which saw its price rise over 37% and 40% respectively against the U.S. Dollar and Bitcoin (BTC) within the past 24 hours, was due to the possibility of a collaboration between The Sandbox & sports merchandise giant Adidas.

Adidas spoke on Twitter Monday about the possibility of building an “adiVerse”, with support from The Sandbox.

Anyone use adiVerse? What should we all build together in @TheSandboxGame https://t.co/VbAdIi9cxN
— adidas Originals (@adidasoriginals) November 22, 2021

At the time of writing, the tweet had been retweeted nearly 1,450 times and received 4,400 likes.

Divergence of RSI in play

Despite having solid fundamentals, SAND is at risk of falling into a bull trap as its price trends clearly diverge from its relative strength indicator (RSI).

In particular, the RSI returns lower values when the market falls and higher values when it rises. Sometimes, however, the RSI moves in the opposite direction to the market, causing so-called RSI divergences.

Related: Metaverse and Blockchain Gaming Altcoins Rise While Bitcoin Searches for Support

A falling RSI and a growing market indicate a bearish divergence. SAND has formed a similar RSI divergence since November’s beginning, which is a sign that momentum has slowed down in the move to the upside.

Daily price chart for SAND/USDT with bearish RSI divergence. Source: TradingView

This does not mean the bull trend has ended, but it does alert to a potential pullback. Based on the Fibonacci Retracement graph, which shows the difference between the $0.17 swing high and the $8.72 swing low, the following chart shows potential entry and exit targets.

Daily price chart for SAND/USDT with Fib levels targets Source: TradingView

SAND could pull back upon testing the $5.45 0.382 Fib threshold, which could lead to a return to the next support level at the 0.5 Fib near $4.45. This same line was the resistance for SAND’s upside efforts between Nov. 18-22.

A continuation of the move above $5.45, with a rise in volumes may allow SAND to test $6.70 at the 0.236 Fib Level — its next upside target.

You should research all aspects of trading and investment before making any decisions.
https://cointelegraph.com/news/sandbox-token-sand-rallies-260-in-november-ahead-of-play-to-earn-metaverse-launch

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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