After a lackluster start to July, The Sandbox (SAND) price finally broke above the critical $0.40 resistance this week. Can the bullish investors build momentum to continue the SAND price recovery mission?
Considering critical data points such as hiring rates and Google search results, global interest in the Metaverse and GameFi sectors has declined over the past year.
But, against the run of play, the highest-ranked Metaverse project, The Sandbox, has recently attracted renewed investor interest.
New Users are Flocking To The SandBox
This summer, the Sandbox (SAND) metaverse ecosystem has attracted many new entrants.
According to data compiled by Santiment, only 328 new SAND wallet addresses were created on June 26. By the close of July 12, this figure has now soared 130% to reach 746 new addresses.
Network Growth tracks the number of new wallet addresses opened on a blockchain network. This gives a rough estimate of the ecosystem’s user acquisition rate.
When Network Growth increases, the increased traction often puts upward pressure on the native token’s price.
Evidently, the chart above suggests that the 130% surge in Network Growth has already impacted SAND price. As seen above, SAND’s price has gained 10% between June 26 and July 13.
With The Sandbox set to host a series of community events in Paris next week, SAND holders can anticipate more gains.
Crypto Traders are Looking to Exploit the Price Recovery Momentum
Furthermore, the growing investor demand also confirms the bullish projection that SAND could embark on a price recovery mission.
As things stand, potential investors have placed orders to buy 7.3 million SAND tokens. Meanwhile, the bears have only listed 4.7 million tokens for sale.
As seen above, there’s currently an excess market demand of more than 2.6 million SAND tokens. When the demand for an asset exceeds supply by such a significant margin, competition sets and puts upward pressure on price.
In conclusion, the surge in new-user acquisition and growing demand for SAND among investors are critical bullish signals. If The Sandbox sustains both growth trends, holders can anticipate more gains.
Read More: Best Crypto Sign-Up Bonuses in 2023
SAND Price Prediction: Is $0.50 in View
The aforementioned on-chain indicators suggest that the bulls could push to reclaim the $0.50. However, the $0.45 could pose a significant challenge.
At that zone, 8,420 investors had bought 122.7 million SAND tokens at an average price of $0.45. It could trigger a retracement if they choose to exit their positions when they break even.
But if they buy into the bullish momentum, they could add to their holdings and push SAND toward $0.50
Yet, the bears could force a downswing if SAND unexpectedly drops below $0.40. However, as seen above, 6,580 investors that bought 52.14 million tokens at the minimum price of $0.40 will likely prevent the drop.
But if that support level folds, SAND could still drop toward $0.35.
More From BeInCrypto: 9 Best AI Crypto Trading Bots to Maximize Your Profits
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
