Few Statistics Why Investors Are Right to Be Optimistic About SAND

Like a few altcoins, SAND’s price falls into the rebellion coin category. These altcoins are generally correlated with Bitcoin, but sometimes they decouple resulting in a massive move. Recent on-chain metric observations suggest that it could finally be SAND’s time for such a rally.

Pressure on the sell side continues to wane

Cardano was in a rebellious phase for some time. After ADA, there were the Metaverse tokens like Sandbox, Decentraland, Enjin Coin, and so on – all of which brought in huge profits. However, looking at the on-chain stats, SAND could cause such an exponential move.

The first and arguably the most important on-chain metric to support this view is exchange offerings. This on-chain index provides a picture of the potential pressure on the sell side of a particular asset.

The higher the supply on exchanges, the higher the selling pressure and the resulting crash. The number of SAND tokens on centralized exchanges dropped from 543.6 million to 464.8 million. This indicated that approximately 78.8 million SAND tokens have left the exchanges.

The drop indicates that these investors are optimistic about the price development of The Sandbox in the coming days.

Source: Saniment

Statistics 1, 2 and 3 say…

Further underlining investor interest is the recent increase in the number of active one-hour addresses from 137 to 1,385 between February 20 and 23. This sudden 10x in the number of active addresses indicates that investors are interested in SAND at current price levels and are likely to build it up.

Source: Saniment

While these two metrics point to a possibility in the future, the funding ratio provides a real-time view of current investor sentiment. From February 1 to February 25, the coverage ratio for SAND increased from -0.007% to 0.01%.

This move in the funding ratio from negative to positive suggests that sentiment has shifted from bearish to bullish. As more market participants continue to hedge on SAND, this value will continue to climb higher.

Source: Saniment

Finally, closing the deal for SAND’s bullish future is the 30-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors who have bought SAND in the past month.

A reading below -10% indicates that short-term holders are selling SAND at a loss. This is likely when long-term holders accumulate, turning it into an opportunity zone.

At the time of writing, the MVRV for SAND has hovered around -19.3%, suggesting a bullish outlook is ahead.

Source: Saniment

A review of these statistics suggests renewed interest in SAND from investors, further reinforcing the idea of ​​a massive bullish outlook.

Leave a Comment