The Sandbox (SAND) reclaimed the $0.50 milestone after slipping below $0.48 earlier this week. Multiple on-chain metrics are now pointing towards a prolonged SAND bull rally toward $0.60. Will this positive SAND price prediction be validated?
On May 22, Paris Hilton announced the launch of an Avatar Collection on The SandBox metaverse ahead of her Los Angeles musical concert. Coincidentally, there has been a 6% surge in SAND price and a positive upturn in some critical on-chain metrics since that announcement.
What are the chances the ongoing SAND price surge will evolve into a prolonged rally?
The Sandbox Network Activity Has Spiked
This week, The Sandbox has witnessed a significant spike in the number of active users interacting on the network. The Daily Active Addresses (DAA) metric sums all the wallet addresses interacting and performing transactions on a given day.
The chart below illustrates that The Sandbox DAA has surged 34% from 488 on May 21 to 656 on May 24.
The Sandbox (SAND) Price Prediction, May 2023 – Daily Active Addresses. Source: Santiment
As seen above, The Sandbox’s active users have increased since Paris Hilton’s announcement on May 22, although other factors could also be in play.
Going by the historical correlation between previous SAND price rallies and spikes in DAA, holders can anticipate more gains in the coming days.
Whales Investors are Bullish
Furthermore, there has been a significant surge in whale accumulation across the Sandbox network since May 22. And this also adds credence to the bullish SAND price prediction.
The red line in the chart below shows how the whale cohort holding one million to 10 million tokens started buying around May 22.
Since then, they have promptly added 6.92 million SAND tokens to their wallet balances.
The Sandbox (SAND) Price Prediction May 2023 – Whales Wallet Balance, Source: Santiment
At a current market price of $0.51, these newly added 6.92 million tokens are worth approximately $3.5 million. When crypto whales invest such a huge amount within a couple of days, it suggests that they are positioned for some bullish action.
In summary, the rise in network activity and the accumulation wave among whale investors could propel the SAND price above $0.60.
SAND Price Prediction: The Bulls are Eyeing $0.60
IntoTheBlock’s In/Out of the Money (IOMAP) data suggests that SAND must break above $0.53 for the bulls to gain firm control. However, the 1,740 investors that bought 39.5 million SAND tokens at an average price of $0.53 could slow the rally.
But, with the current positive market dynamics outlined above, the bulls will likely find the momentum to push for $0.60.
The Sandbox (SAND) Price Prediction May 2023 – IOMAP data. Source: IntoTheBlock
On the other hand, the bears could invalidate the bullish Sandbox price prediction if it breaks below the critical $0.50 support level.
But a potential demand wall from the 2,000 investors that purchased 15.8 million SAND at an average price of $0.50 could shore up the price.
If that support level cannot hold, SAND price could drop to $0.45.
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