The Sandbox (SAND) continues to ride a bullish wave, recently hitting a yearly high of $0.86. However, a 14% pullback has left the token trading at $0.76. On-chain data and technical analysis suggest that the much-anticipated $1 target might be out of reach, at least for now.
Long-Term Holders Trigger Selling Pressure
SAND’s recent rally has encouraged long-term holders to move dormant tokens. According to Santiment, the age-consumed metric for SAND surged to a two-month high of 33.19 billion on Sunday. This metric tracks the movement of long-held coins, and its significant spike often signals selling activity.
The selling trend was confirmed by the Exchange Flow Balance, which rose by 162% in the past 24 hours. This metric shows a net increase in SAND tokens being deposited to exchanges, suggesting holders are preparing to sell.
Overbought Conditions Add to Concerns
On the daily chart, SAND’s Relative Strength Index (RSI) has reached 87.18. This figure is well above the overbought threshold of 70, indicating the token could face further declines.
If selling pressure continues, SAND’s price might drop to $0.72, with a further decline to $0.61 possible. These levels are far below the $1 target, making a near-term rally unlikely.
SAND’s Path to Recovery
For SAND to regain momentum, selling pressure must ease. If this happens, the token could reclaim its year-to-date high of $0.86 and potentially challenge higher resistance levels. Until then, traders should remain cautious as market indicators signal a possible downturn.
