SAND, the native token of The Sandbox, has caught up with its fellow altcoins on the roll downhill. The token has dipped below the widely tracked 200-day moving average (MA) and fallen deep into the gloomy market.
According to CoinMarket Cap data, SAND has been down by 0.76% in the past 24-hours and is trading at $3.07. The Sandbox had come up with a staking mechanism to reap the benefits of users not having to worry about paying transaction costs. Staking is a process that locks up coins in the blockchain for a period. It also contributes to the security in return for rewards.
Analysts highlighted that SAND is the last of the major coins to have entered the bearish territory under the 200-day MA. Jeetesh Tipe, the founder and CIO of MintingM, says professional traders track high-level indices like altcoins market capitalization and total crypto market value. He pointed out that both metrics are currently trading under the 200-day MA. Tipe noted that the crypto market, dip under the 200-day MA has been followed by quarters of consolidation and moves higher. He believes it’s better to hold bitcoin in such situations as it will protect the downside and reduce volatility.
Ravi Jain, an independent market strategist, pointed out that major coins trading below 200-day MA signals more pain for the market ahead. Three months ago, there was a perfect bull market top signal when BTC did not live up to its all-time high due to fear of interest rate hike by the Federal Reserve. The strategist said altcoin coins are losing but the bitcoin market is showing no signs of panic selling or capitalization by long-term holders.