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SAND price failed to breach the $0.441 resistance, causing the decline over the last 48 hours that has recovered on Wednesday.
Whale addresses have accrued nearly 11.4 million SAND in the past two weeks but could pause this streak for a while.
The 7-day MVRV ratio shows that SAND investors could resort to HODLing for now, given that the altcoin failed to reach the opportunity zone.
SAND price noted recovery in the past 24 hours, but one of the biggest catalysts of the altcoin might not be present in the next leg of the rally. This is because Sandbox did not give its investors much room to accumulate before resuming its run, as evidenced by the on-chain indicators.
SAND price, trading at $0.440 at the time of writing, recovered the losses witnessed yesterday when the altcoin dipped by 4%. Testing resistance at $0.441, the altcoin could see a further rise if this barrier is breached and flipped into support.
While the Moving Average Convergence Divergence (MACD) indicator suggests that the bullishness is waning, there is still some room for an uptick before bearish momentum builds. If SAND breaches $0.441, this bearish momentum might not gain strength, allowing Sandbox to achieve a three-month-high at $0.457.
SAND/USD 1-day chart
But if the breach fails once again, the SAND price could decline, and the support level could be tested at $0.405. Losing this support line would see the cryptocurrency crash to $0.382. Falling through that level would invalidate the bullish thesis, leaving SAND vulnerable to a decline to $0.360.
SAND whale addresses have been acting as a catalyst for the price action for a while now, as their accumulation has resulted in price rises. The addresses holding 100,000 to 1 million SAND tokens have added nearly 11.4 million SAND worth over $5 million in the span of two weeks.
In the same duration, SAND price rallied by 36%. Looking at whale movement from the past day, it does not seem like the whale addresses are willing to stop their accumulation.
Sandbox whale accumulation
However, the conditions building at the moment across the network could incite these whales to pause their accumulation for a time.
The reason behind this pause would be the lack of a clear trend visible in the case of SAND, halting any potential price rise or decline. The altcoin is, therefore, likely to move sideways over the next couple of days.
The Market Value to Realized Value (MVRV) ratio is an indicator that is used to assess the average profit/loss of investors who purchase an asset. The 7-day MVRV ratio measures the average profit/loss of investors who purchased an asset in the past week. In the case of Sandbox, the MVRV ratio is at -1.06%, which suggests that the overall loss witnessed by investors who purchased their SAND in the past week is 1%.
Sandbox MVRV ratio
The indicator is noting an uptick at the moment without dipping into the opportunity zone. Whenever the MVRV value hit anywhere between -4.1% and -9.1% in the past, it was mostly followed by rallies. Hence, this area is termed an “opportunity zone” and an ideal place for accumulation.
But since SAND did not reach into this zone, accumulation might tail off, and even whale addresses would resort to booking profits once the price crosses above the $0.457 mark.
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