Whale activity intensified, pushing SAND near critical support levels, placing most holders in a precarious position of unrealized losses.
-
Hashed deposited 36.9M SAND to Binance, increasing sustained sell-side pressure.
-
74.77% of holders were in loss at press time, compromising SAND’s potential for upward recovery.
The tumultuous activity within the Sandbox [SAND] market raises critical questions about its near-term viability as whale deposits indicate growing sell pressure.
Can the $0.29–$0.30 Support Zone Sustain SAND’s Decline?
SAND appears trapped within the $0.29 to $0.30 demand zone, which has previously served as a pivotal support area on the charts. Despite several rebounds from this level, the token has consistently recorded lower highs—a clear indicator of shrinking bullish momentum. The recent decline towards this zone, followed by a brief rally to $0.312, suggests significant buyer hesitation and heightened vulnerability in the market.
Should this support level yield to pressure, bearish sentiments may dominate, pushing SAND to fresh monthly lows. The prevailing price structure exhibits fragility, particularly given the escalating whale activity that raises red flags for future performance.
Source: TradingView
Will SAND’s Underwater Holders Create Resistance During Recovery Attempts?
According to IntoTheBlock data, a staggering 74.77% of SAND holders are experiencing negative returns, as they hold positions above the current price of $0.311. This translates to approximately 2.24 billion SAND involved in unrealized losses. Only 18.75% of holders appear to be in profit at this time.
This situation presents a notable wall of potential selling pressure above the current price, as many holders may look to exit their positions when breakeven is achieved. Consequently, any upward momentum is likely to encounter strong resistance, as profit-taking from these trapped holders becomes increasingly probable. Unless new demand surfaces, the potential for bullish movements remains limited.
Source: IntoTheBlock
Is Declining User Activity a Red Flag for Price Recovery?
The last week has seen an 8.86% decline in daily active addresses, while new address creation fell by 0.95%. Such a downturn in user participation may signal diminished demand for SAND and suggests weak market sentiment. Historically, robust user activity correlates with price appreciation.
Current data points to a slowdown in both speculative interest and practical utility, hindering the likelihood of a sustained recovery.
Source: IntoTheBlock
Could Short Liquidations Above $0.32 Spark Volatility?
The Binance liquidation heatmap reveals a significant concentration of short stop orders above the $0.32 mark. If SAND manages to climb and trigger these positions, a short squeeze could lead to amplified gains. However, the journey to this level is fraught with uncertainty, especially given the prevailing bearish pressure from whale deposits.
Moreover, the ongoing weak network participation and widespread holder losses diminish the likelihood of a smooth breakout.
Source: Coinglass
Current market dynamics, including persistent whale inflows, declining user engagement, and significant losses among holders, place SAND under considerable pressure. While the $0.29–$0.30 support might currently hold, these bearish indicators suggest a breakdown may be more probable than a breakout.
Conclusion
In summary, the ongoing challenges facing SAND highlight the need for caution among investors. With dominant whale activity, a significant number of holders in loss, and diminishing user participation, the path to recovery appears steep. Traders and investors should remain alert to market signals, focusing on demand shifts that could influence future price movements.
