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The Sandbox ($SAND) price is in the process of breaking out from a short-term corrective pattern which could accelerate the upward movement toward $0.98.
Despite the ongoing $SAND price increase, there is some upcoming negative The Sandbox news. On Feb. 14, 348 million $SAND tokens will be unlocked to seed and strategic investors. This will cause an increase of roughly 23% in the current supply of 1.5 billion tokens. The previous such unlock caused a fall of 20% a few days after the event. Therefore, a similar plunge could follow after Feb. 14. Since the maximum supply is three billion, several other unlocks will eventually follow.
The Sandbox Price Validates Support
$SAND is the utility token of the play-to-earn The Sandbox game in the Ethereum blockchain. Since Jan. 1, The Sandbox price has increased by 110%, leading to a high of $0.85 on Jan. 22. The upward movement also caused a breakout from a descending resistance line.
Afterward, the daily RSI generated bearish divergence (green line), catalyzing the current fall.
On Feb. 1, the digital asset created a bullish candlestick, bouncing and validating the $0.69 horizontal area as support. Therefore, the most likely outlook is the continuation of the upward movement toward the next resistance at $0.98.
On the other hand, a close below the $0.69 horizontal support area would invalidate this bullish price forecast and catalyze a fall to $0.55.
Short-Term Breakout Could Accelerate Increase
The technical analysis from the short-term three-hour chart provides a bullish outlook. There are two main reasons for this:
Firstly, the $SAND price is trading inside a descending parallel channel, which is considered a bullish pattern.
Secondly, the three-hour RSI has generated bullish divergence (green line), which was confirmed over the past 24 hours. Both are signs associated with bullish trends.
As a result, a breakout from the channel could catalyze an increase toward the previously outlined $0.98 resistance area.
To conclude, the most likely $SAND price forecast is the continuation of the upward movement toward $0.98. A daily close below $0.69 would invalidate this positive outlook and could send the $SAND price down toward $0.55.