- A bullish pennant breakout for SAND is targeting $1, supported by strong price action above $0.62.
- Declining exchange reserves and bullish on-chain indicators have strengthened the upward price momentum.
that Sandbox (SAND) It broke the important resistance level of $0.62, forming a bullish pennant on the daily chart, sparking optimism among traders.
The breakout signaled a potential rise to the $1 level thanks to increased market momentum and improved on-chain activity.
At press time, SAND was trading at $0.6308, up 8.60% in the last 24 hours. However, the price faces a looming resistance level that could challenge its ability to sustain this uptrend.
SAND price action analysis
SAND’s recent price action has shown consistent respect for the bullish pennant pattern, confirming $0.62 as a pivotal level.
A break above this resistance level would spark buying interest, indicating a possible continuation of the upside.
Therefore, the next major target for SAND is $0.75, with $1.00 being the psychological level.
On the downside, a correction could test support at $0.43, especially if the bullish momentum wanes. Traders should also monitor whether a consolidation could occur before another breakout occurs.
On-chain signals highlight growing interest.
On-chain indicators further support SAND’s optimistic outlook. Net network growth increased by 0.30%, indicating steady user adoption, with 0.83% of current holders “making money,” reflecting profitable positions.
However, the concentration of major shareholders decreased slightly by 0.04%, indicating that profit-taking activities were minimal.
Additionally, large transactions surged 10.96%, boosting activity among institutional traders.
While these indicators suggest growing interest, the slight decline in concentration highlights the importance of closely monitoring deployment trends.
Technical indicators are consistent with the optimistic outlook.
Technical indicators provided further confirmation of SAND’s upside potential. At the time of reporting, RSI was 49, indicating neutral momentum with a bullish tone.
Additionally, the Bollinger Band is narrowing, signaling a potential breakout as price volatility decreases.
If SAND maintains this momentum, an explosive uptrend could follow. However, failure to hold support above $0.62 could result in a temporary retracement before attempting the resistance level again.
Exchange reserve analysis signals indicate decreasing selling pressure.
Exchange holdings data looks optimistic, with SAND holdings decreasing by 1.51% in the last 24 hours. This decline indicates that there are fewer tokens available for trading as holders move their coins off exchanges.
Additionally, reduced supply on exchanges often reduces selling pressure, providing a favorable environment for price increases.
Therefore, a continued decline in reserves could further support the ongoing rally.
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Can SAND reach $1?
SAND has strong potential to reach $1.00 on the back of a bullish pennant breakout, improving on-chain metrics, and reduced selling pressure.
However, maintaining this momentum will require overcoming key resistance levels and maintaining broader market optimism. The next few days will be critical in determining SAND’s trajectory.