In the midst of the ever-changing cryptocurrency landscape, Animoca Brand, the visionary behind The Sandbox (SAND), has captured the attention of crypto enthusiasts and analysts alike. This interest is largely due to its recent significant acquisition that could potentially reshape the dynamics of SAND in the market. On October 26, 2024, blockchain transaction tracker EyeOnChain revealed through a post on X (formerly known as Twitter) that Animoca Brand had acquired a staggering 20 million SAND tokens, valued at approximately $4.95 million, from Binance.
Animoca Brand Buys 20 Million SAND
This noteworthy acquisition was executed via two distinct transactions using the wallet address “0x80AD.” In the initial transaction, Animoca Brand withdrew 15 million SAND tokens, amounting to $3.98 million. This was swiftly followed by a secondary transaction involving an additional 5 million tokens, valued at $1.33 million. Subsequently, the company disclosed that the acquired SAND tokens were transferred to a different wallet address, identified as “0x3Ac.”
These substantial token movements come at a time when SAND is witnessing a persistent price decline, having decreased by over 14% in the past week alone. Moreover, Animoca’s wallet address “0x80AD” is currently holding 25 million SAND tokens, valued at approximately $6.16 million.
SAND’s Price Momentum
Despite this significant withdrawal, SAND has experienced a further decline of over 6.5% in the last 24 hours, currently trading near $0.244. During the same timeframe, its trading volume surged by 55%, indicating increased interest and participation from traders and investors. This surge in activity suggests that there could be a potential buying opportunity on the horizon.
SAND Technical Analysis and Upcoming Levels
From a technical analysis perspective, SAND has been navigating within a parallel channel pattern, oscillating between the price levels of $0.234 and $0.304. Presently, the asset finds itself at the lower boundary of this pattern. Historically, whenever SAND’s price approaches this level, it tends to encounter buying pressure, often resulting in a price surge of over 27%.
Market experts and traders are anticipating a similar outcome for SAND this time around, which could be a driving factor behind Animoca Brand’s significant token purchase. However, it’s important to note that despite this optimistic outlook, SAND is currently trading below the 200 Exponential Moving Average (EMA) on a daily chart, signaling a prevailing downtrend. On the other hand, its Relative Strength Index (RSI) is in the oversold territory, hinting at a potential upside rally in the near future.
This strategic acquisition by Animoca Brand, in conjunction with the current technical indicators, paints a complex picture for SAND. While current market conditions suggest caution, the potential for a rebound cannot be ignored. Traders and investors will be closely monitoring these developments as they unfold, weighing the risks and opportunities presented by Animoca Brand’s bold move in the cryptocurrency market.
