The Sandbox (SAND) Price Increase: Paris Hilton’s Role?

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The Sand­box (SAND) reclaimed the $0.50 mile­stone after slip­ping below $0.48 ear­li­er this week. Mul­ti­ple on-chain met­rics are now point­ing towards a pro­longed SAND bull ral­ly toward $0.60. Will this pos­i­tive SAND price pre­dic­tion be validated? 

On May 22, Paris Hilton announced the launch of an Avatar Col­lec­tion on The Sand­Box meta­verse ahead of her Los Ange­les musi­cal con­cert. Coin­ci­den­tal­ly, there has been a 6% surge in SAND price and a pos­i­tive upturn in some crit­i­cal on-chain met­rics since that announcement. 

What are the chances the ongo­ing SAND price surge will evolve into a pro­longed rally? 

The Sandbox Network Activity Has Spiked

This week, The Sand­box has wit­nessed a sig­nif­i­cant spike in the num­ber of active users inter­act­ing on the net­work. The Dai­ly Active Address­es (DAA) met­ric sums all the wal­let address­es inter­act­ing and per­form­ing trans­ac­tions on a giv­en day. 

The chart below illus­trates that The Sand­box DAA has surged 34% from 488 on May 21 to 656 on May 24.

The Sandbox (SAND) Price Prediction, May 2023 - Daily Active Addresses
The Sand­box (SAND) Price Pre­dic­tion, May 2023 – Dai­ly Active Address­es. Source: San­ti­ment

As seen above, The Sandbox’s active users have increased since Paris Hilton’s announce­ment on May 22, although oth­er fac­tors could also be in play. 

Going by the his­tor­i­cal cor­re­la­tion between pre­vi­ous SAND price ral­lies and spikes in DAA, hold­ers can antic­i­pate more gains in the com­ing days. 

Whales Investors are Bullish 

Fur­ther­more, there has been a sig­nif­i­cant surge in whale accu­mu­la­tion across the Sand­box net­work since May 22. And this also adds cre­dence to the bull­ish SAND price prediction. 

The red line in the chart below shows how the whale cohort hold­ing one mil­lion to 10 mil­lion tokens start­ed buy­ing around May 22. 

Since then, they have prompt­ly added 6.92 mil­lion SAND tokens to their wal­let balances. 

The Sandbox (SAND) Price Prediction May 2023: Whales Wallet Balance,
The Sand­box (SAND) Price Pre­dic­tion May 2023 – Whales Wal­let Bal­ance, Source: San­ti­ment

At a cur­rent mar­ket price of $0.51, these new­ly added 6.92 mil­lion tokens are worth approx­i­mate­ly $3.5 mil­lion. When cryp­to whales invest such a huge amount with­in a cou­ple of days, it sug­gests that they are posi­tioned for some bull­ish action. 

In sum­ma­ry, the rise in net­work activ­i­ty and the accu­mu­la­tion wave among whale investors could pro­pel the SAND price above $0.60.

SAND Price Prediction: The Bulls are Eyeing $0.60

IntoTheBlock’s In/Out of the Mon­ey (IOMAP) data sug­gests that SAND must break above $0.53 for the bulls to gain firm con­trol. How­ev­er, the 1,740 investors that bought 39.5 mil­lion SAND tokens at an aver­age price of $0.53 could slow the rally. 

But, with the cur­rent pos­i­tive mar­ket dynam­ics out­lined above, the bulls will like­ly find the momen­tum to push for $0.60.

The Sandbox (SAND) Price Prediction May 2023 - IOMAP data
The Sand­box (SAND) Price Pre­dic­tion May 2023 – IOMAP data. Source: IntoThe­Block

On the oth­er hand, the bears could inval­i­date the bull­ish Sand­box price pre­dic­tion if it breaks below the crit­i­cal $0.50 sup­port level.

But a poten­tial demand wall from the 2,000 investors that pur­chased 15.8 mil­lion SAND at an aver­age price of $0.50 could shore up the price. 

If that sup­port lev­el can­not hold, SAND price could drop to $0.45.

Disclaimer

In line with the Trust Project guide­lines, this price analy­sis arti­cle is for infor­ma­tion­al pur­pos­es only and should not be con­sid­ered finan­cial or invest­ment advice. BeIn­Cryp­to is com­mit­ted to accu­rate, unbi­ased report­ing, but mar­ket con­di­tions are sub­ject to change with­out notice. Always con­duct your own research and con­sult with a pro­fes­sion­al before mak­ing any finan­cial decisions.



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