The Sandbox (SAND/USD) price has made a strong recovery in the past few weeks as investors wait for the upcoming Alpha season 2. SAND is trading at $4.55, which is about 78% above the highest level this year. Its total market capitalization has risen to $4.2 billion, making it the 36th biggest cryptocurrency in the world.
Metaverse cryptocurrencies rise
The Sandbox is a leading blockchain project that is in the metaverse industry. It has several angles. For example, it has a metaverse platform where people can buy and equip their virtual property.
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Further, Sandbox has a gaming side known as Sandbox Alpha. The first season of Alpha ended in December last year and saw people win awards. The second phase is set to come in the first quarter of this year.
Most importantly, Sandbox is a leading platform for non-fungible tokens (NFT). A quick look at its marketplace shows that there are many NFTs selling for more than $1,000.
The Sandbox price jumped to an all-time high of $8.47 on November 25 as Alpha was starting. Shortly afterwards, the price started falling and has declined by about 50% since then. This decline was in line with the performance of other cryptocurrencies.
In my view, the main reason is that investors were worried about whether the metaverse will continue doing well in a period of high-interest rates. Last week’s weak results by Meta Platforms did not help the situation.
The SAND price joined other metaverse coins like Axie Infinity, Decentraland, and Gala in a spectacular rally during the weekend. This rebound was likely because of the improving risk sentiment after the strong quarterly results by Amazon.
The coin also rose because of the upcoming web 3 land sale in the network that is scheduled for February 10th. There will be 550+ LANDs in 8 auctions.
The Sandbox price prediction
The daily chart shows that the SAND price has been in a bullish trend in the past few days. It has managed to move above the 50% Fibonacci retracement level. It is also approaching the upper side of the descending channel that is shown in pink. It has also crossed the 25-day and 50-day moving averages.
Therefore, while the bullish trend will likely continue, there is a likelihood that profit-taking will push it lower this week. If this happens, the next key support to watch will be at $3.50.
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Source: https://invezz.com/news/2022/02/07/sand-heres-why-the-sandbox-price-has-rebounded/