Should you buy The Sandbox coin after the latest dip?
The Sandbox (SAND/USD) has been slapped in the face recently. The coin jumped by more than 1,100% in November, becoming one of the top cryptocurrencies in the world. It is now trading at $4.78, which is about 43% below the highest level in November. Its total market cap has retreated to more than $4.7 billion.
Why has SAND lagged?
The metaverse was the main theme in the cryptocurrency industry in November this year. This happened after many companies like Facebook, Microsoft, and Nvidia increased their focus on the industry.
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The Sandbox is one of the most popular metaverse cryptocurrencies in the world. Indeed, in November, the developers raised $93 million from investors led by Softbank.
The platform enables people to build their metaverse and do transactions that are powered using non-fungible tokens (NFT). Indeed, its demand has been rising substantially in the past few months.
For example, over the weekend, it was reported that a plot of virtual land adjacent to Snoop Dogg’s estate had sold for more than $453k. This announcement came a few days after another plot sold for more than $4.3 million.
Therefore, The Sandbox price is falling mostly because of profit-taking. Historically, cryptocurrencies and other assets tend to stabilize after staging a parabolic run.
Another reason is that investors are afraid of the tightening Federal Reserve. As you recall, last week, the Federal Reserve chair said that the bank will start tightening in the coming months. This means that the bank will wind down its QE program in the first quarter of the year. This explains why most cryptocurrencies like Ethereum and Bitcoin have crashed.
The Sandbox price prediction
The four-hour chart shows that the SAND price has been in a major sell-off lately. A closer look shows that the sell-off intensified when the coin moved below the chin of the double-top pattern at $5.76. The coin has also dropped below the 25-day and 50-day moving averages. The money flow index (MFI) has moved to the oversold level.
Therefore, The Sandbox will likely keep falling as investors target the 61.8% retracement level at $3.6190. This price is about 25% below the current level.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
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