Due to the rapid popularity of NFTs among investors, gaming tokens such as Axie Infinity’s AXS and Enjin Coin have seen a remarkable rise in recent times. In fact, so far, AXS is the biggest gainer in 2021, with an astonishing 23,554% gain since the beginning of the year. As crypto enthusiasts continue to follow the trend of NFTs, the sandbox has become one of the biggest beneficiaries.
As such, the underlying cryptocurrency SAND has risen 7,100% since the beginning of the year. The platform allows users to create, own and monetize gaming experiences on the Ethereum blockchain. It is also mostly owned by Animoca Brands, a Hong Kong-based game developer known for its video game products for iOS and Android. At the time of writing, SAND is trading at $2.87, up 74% in the last 24 hours.
Sand 4 hour chart
Source: SAND/USD, TradingView
The symmetric triangle breakout on the chart is the trigger for SAND’s recent price increase. After the triangle started forming almost two months ago, the price broke through the uptrend line on October 27th. After the breakout, SAND surged another 300% and marked a 400% Fibonacci expansion at $3.24.
The next targets are the 461.8% and 500% Fibonacci expansions of $3.72 and $4 respectively. If take-profit is a threat, a 300% Fibonacci extension could provide relief before the next rise. A deeper sell-off could be offset by the Fibonacci extension of 161.8%, which offset the 42% decline observed on October 31st.
At the same time, the 4-hour RSI and MACD did not find divergence while the price trend of SAND maintained higher highs. This is undoubtedly a positive sign. For bullish traders, the higher highs of the nice oscillator are encouraging. However, if the RSI is below its previous highs, the overbought figure may need to be corrected.
In conclusion
SAND should rise 23% again to mark the level of the 500% Fibonacci extension. Given the recently confirmed massive influx of funds, SAND can achieve this feat without worrying about sabotaging the fix. However, you should pay attention to the RSI, which has formed several highs in the overbought zone.
The sell could strike back immediately at the 300% Fibonacci level, and a stronger response would require the 161.8% Fibonacci level to rise again.
Source of information: Compiled with 0x information from AMBCRYPTO. Copyright belongs to the author, and any unauthorized reproduction is prohibited.
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