The Sandbox Enters ‘Depression’ Phase – Is Now the Time to Acquire SAND?

SAND, the native token of metaverse platform ‘The Sandbox,’ has gained over 40% in the past month, driven by a broader market resurgence that pushed its price to $0.61, a level last seen in April this year. SAND is one of the popular GameFi tokens that initially gained prominence in 2020-2021 amid the pandemic, providing individuals with an alternative source of income during lockdowns.

Despite the initial prominence of GameFi tokens in 2020-2021 during the pandemic, their values sharply declined as the broader crypto industry experienced a downturn starting in late 2021. But the tokens could be poised for a much-anticipated resurgence as the latest data revealed that SAND appears to be in a ‘depression’ phase.

The Sandbox (SAND) in Depressions Phase

According to prominent on-chain analyst Ali Martinez, this represents a crucial point in the typical market psychology cycle. As such, this period could indicate a favorable moment, as the market may be gearing up for a prospective upturn.

#TheSandbox appears to be in the ‘depression’ phase, a crucial point in the typical market psychology cycle. This could be an opportune moment for investors to consider acquiring $SAND, as the market might be poised for a future upswing. pic.twitter.com/Sd8B3d2fct

— Ali (@ali_charts) December 25, 2023

Martinez referenced the Wall Street cheat sheet, which dissects the psychology of market cycles and illustrates the varied emotions at play. According to the chart, markets operate in cyclical patterns, with these cycles recurring consistently. The cheat sheet delineates the thought processes of market participants at various stages of the market cycle.

In this phase, as public confidence in the market reaches its lowest point, signs of improvement subtly emerge. Investors, although emotionally bruised at this stage, need to recognize that sellers have exited the market. This opens the door for the accumulation of assets at exceptionally low prices, marking the beginning of the next market cycle’s momentum.

The analyst noted that the bullish opportunity for SAND lies at $0.55, a level that has already been surpassed. With a clear path ahead and no major resistance, SAND could target higher levels. The next crucial resistance barrier is situated between $0.90 and $1.35, where 23,000 addresses collectively hold 447 million SAND.

The Sandbox Expansion Plans

The bullish prognosis follows The Sandbox’s expansion plans. As revealed last week, the metaverse platform aims to establish India as its largest market within the next two years.

The Sandbox had first forayed the nation in February through a joint venture with a local entity, marking a significant first for the subsidiary of metaverse gaming and venture capital giant Animoca Brands.

Earlier this year, The Sandbox encountered a security breach through a malicious application. As previously reported, an unauthorized third party successfully accessed the computer of one of its employees and utilized the obtained information to send a deceitful email posing as The Sandbox.