The Sandbox is one of the most popular metaverse-themed coins. The rise of crypto-based metaverse games like this is currently generating a lot of interest among investors.
The SAND token is showing signs of a tremendous rally, with new higher highs being set one after another. After a dramatic breakthrough from the last swing high of $4.6 on November 22nd, this cryptocurrency gave another entry opportunity for crypto traders.
The token rallies once more to challenge the chart’s higher levels. At the time of writing, it is trading at $7.73, down from it’s 24hr high of $7.91. It is up by 41.5% in the last 24 hours.
The token’s year-to-date and month-to-date gains now stand at 14,700 percent and 260 percent, respectively, increasing its market valuation to just over $5 billion. As a result, the token is now the crypto sector’s 41st largest coin.
Reasons behind the rally?
In a statement, the blockchain startup stated that up to 5,000 random gamers would be chosen to receive up to 1,000 SAND (equal to $5,540) and three nonfungible tokens (NFT) for spending time on all 18 Sandbox virtual experiences.
There’s also the possibility of a future collaboration between the Sandbox and Adidas, the world’s largest sports goods company. As a result, there has been a flurry of buying throughout SAND spot markets, resulting in gains of over 40% and 37% against Bitcoin (BTC) and the US dollar, respectively, in the previous 24 hours.
SAND may now be rallying into a bull trap, despite all of these solid fundamentals. This is due to the fact that its price trend is deviating significantly from its relative strength index (RSI).
From all signs, and especially given the fact that SAND has been creating a bullish divergence since the beginning of November, this is a strong hint that the upward momentum has slowed.