Sandbox token SAND accumulates 260% in November ahead of the start of the play-to-earn metaverse

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SAND, the native token of The Sandbox – a blockchain-based gaming platform owned by Animoca Brands – soared inches on November 23, building on its November profits to hit another record high.

The price of SAND rose to $ 5.64 after rising 16.25% within the day, but some of those gains were returned at $ 5.54 at the time of writing. As a result of the move, the growth of the sandbox token rose to almost 260% over the course of the month and year. over 14,700% with a market capitalization of over $ 5 billion sector.

SAND / USDT daily price chart. Source: TradingView

Many catalysts behind the SAND price rally

The exuberance this month was partly due to The Sandbox’s announcement that it would earn part of its metaverse through its multi-week alpha event to play, starting November 29th at 1:00 p.m. UTC.

In detail, the blockchain startup confirmed that it would select a group of 5,000 players to earn up to 1,000 SAND (currently valued at $ 5,540) and three non-fungible tokens (NFT) while playing age 18 spend virtual experiences from sandbox.

In addition, the most recent wave of buying in the SAND spot markets – which has seen gains of over 37% and 40% against the US dollar and Bitcoin (BTC) in the past 24 hours – was based on hopes for a possible collaboration between The Sandbox and Sports attributed goods giant Adidas.

On Monday, Adidas discussed on Twitter the potential of building a so-called “adiVerse” with the support of The Sandbox.

The tweet had received nearly 1,450 retweets and 4,400 likes at the time of writing.

RSI divergence in the game

Despite solid fundamentals, SAND risks falling into a bull trap as its price trends deviate significantly from the Relative Strength Index (RSI).

In particular, the RSI typically returns higher when the market is rising and lower when the market is falling. Occasionally the RSI and the market move in opposite directions, creating what are known as RSI divergences.

Related: Metaverse and blockchain gaming altcoins bounce back as Bitcoin seeks support

However, a falling RSI and a rising market show a bearish divergence. Notably, SAND has been forming a similar RSI divergence since early November, a sign that the upside momentum has slowed.

SAND / USDT daily price chart with bearish RSI divergence. Source: TradingView

That doesn’t mean the uptrend is over, but it warns of a possible short-term pullback move. The chart below shows the potential entry and exit targets for the upcoming sessions, based on the Fibonacci retracement chart between the low of $ 0.17 and the high of $ 8.72.

SAND / USDT daily price chart with Fib level goals. Source: TradingView

A pullback in testing the 0.382 Fib level at $ 5.45 could cause SAND to return to its next support line at 0.5 Fib near $ 4.45. The same line acted as resistance during SAND’s upside attempts between Nov 18th and 22nd.

Conversely, a sustained move above $ 5.45, accompanied by an increase in volume, could open an opportunity for SAND to test $ 6.70 – at the 0.236 Fib level – as its next upside target.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should do your own research when making a decision.