Friday started out rather pessimistic. It’s like a “don’t check your portfolio” tag. Along with Bitcoin and ETH, tokens fell out of almost every category.

Of course, the metaverse token is no exception and drops even more. While the top coins fell 2-4% on the last day, the meta / game token is losing 8-12%.

SAND, the third largest token by market cap in this group, slumped 11% in just one day. In parallel, the total weekly decrease at the time of analysis is almost 20%.

Will SAND Sink Deeper?

To answer this question, it is necessary to analyze the state of the token.

According to ITB data, the average HODLer balance exceeded $ 450,000 in the last week of November, but has since halved and is now around $ 220,000.

A sharp drop in the average balance means that market participants are giving up the token. In fact, the statistics of the order book and the transaction data of each side support the above claim.

So if both profit-taking and the exiting craze continue, it will be very difficult for SAND to make up for the losses.

Average balance | The source: IntoTheBlock

The sales trend went hand in hand with a decline in the proportion of active addresses. Compared with the high of 17.4% at the end of November, this rate was only 3.4% at the time of the analysis. Users leaving the ecosystem isn’t a good sign, especially when the market is declining.

Additionally, bearish signals are starting to form even on the DAA price divergence chart. That is not a good sign either.

The source: mood

Optimistic price table

Despite the unfavorable position of the indicators, the price chart looks quite optimistic. The SAND slid below the 38.2% Fibonacci level earlier this week but did not fall much further. For the past 5 days, the price stayed active above $ 4.6, or the 50% Fib. So if this level continues to act as a support, the SAND could gradually change its trend.

SAND / USDT | Source: TradingView

Additionally, ITB data shows that the token is currently negatively correlated with Bitcoin (-0.54 to be exact). Meanwhile, the possibility that Bitcoin will be back on its feet seems rather bleak. As such, SAND is in a pretty good position to take advantage of.

It will be more or less a matter of time before a buying trend emerges in the SAND market. When this happens, the condition of most of the above indicators will improve. Hence, it makes sense to expect the SAND to hit up to $ 6 and more.

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