The Sandbox’s Bear Market Woes: 98% of Holders in Losses as Price Nears 2022 Lows
The Sandbox (SAND) witnessed a brief uptick in its price, reaching $0.27 during early trading today. However, with a staggering 98% of its holders currently facing losses, the token is at risk of another price drop. This precarious situation leaves SAND vulnerable to further declines, potentially testing its lowest price levels seen during the 2022 bear market.
Year-to-Date (YTD) Performance: A Grim Outlook
Year-to-date, SAND has suffered a significant price drop, falling by 56.22%. If this downward trend persists, the cryptocurrency could inch closer to its bear market lows. The token’s recent price movement has been a double-edged sword—while there has been a modest 6% increase over the last seven days, the underlying data suggests that this recovery may be short-lived.
On-Chain Metrics: MVRV Long/Short Difference Signals Caution
A critical metric to watch is the Market Value to Realized Value (MVRV) Long/Short Difference, currently at -35.56%. This metric provides insights into market profitability, distinguishing between bear and bull phases. Negative values, like the one SAND is currently experiencing, indicate that short-term holders could realize more profits than long-term holders if they decide to sell now. Conversely, positive values favor long-term holders in a bullish market.
Historically, SAND tends to enter a bear phase when the MVRV Long/Short Difference falls between -40.74% and -75.26%. This was evident during the 2022 bull market, which eventually led to a significant downturn in crypto prices. If SAND’s price fails to gain substantial momentum, the token could face increased selling pressure, pushing it further into a bear market.
Market Sentiment: Bulls and Bears Indicator Points to Weak Confidence
Another indicator supporting the bearish outlook for SAND is the Bulls and Bears Indicator. This tool tracks whether the top 1% of trading volume participants are buying (bulls) or selling (bears). Over the past seven days, the data shows 28 more bears than bulls, signaling a lack of confidence among traders. This bearish sentiment could apply additional downward pressure on SAND’s price.
Technical Analysis: Bear Market Dominance Persists
Technical analysis further aligns with the bearish signals from on-chain data. The Balance of Power (BoP) indicator has dropped to -0.64, suggesting that sellers currently dominate the market. The BoP oscillates around the zero line to indicate the relative strength of buyers versus sellers. With the BoP below zero, it’s clear that the market is under bear market control.
Fibonacci Retracement Levels: Key Price Points to Watch
Fibonacci retracement levels provide potential price targets based on recent market activity. If selling pressure persists, SAND could see its price drop to $0.20. Conversely, if bullish momentum strengthens, the token might attempt to retest the $0.30 level, though this would require a significant shift in market sentiment.
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