The Sandbox [SAND] sees large inflows into exchanges: Good news for investors?

• The Sandbox saw close to 100 million inflows into exchanges in recent days.
• The token unlock event coming up in a few days might be a motivating factor.

The value of The Sandbox [SAND] increased significantly at the start of 2023. Nevertheless, price movement has slowed recently, and a review of several crucial parameters revealed that some significant events for the game token might take shape.

Read The Sandbox’s [SAND] Price Prediction 2023-24

Inflow surges

A significant amount of SAND was being moved to exchanges at press time, based on data collected from Glassnode. This much could be inferred from the observation of the NetFlow indicator and the apparent increase in exchange flows.

The outflow was dwarfed by the inflow, which surged to nearly 82 million from the observed chart. The data suggested that investors were now transferring their tokens to several exchanges on a huge scale to sell them. 

Source: Glassnode

A zig-zag on SAND

According to a daily timeframe analysis of The Sandbox, there were a few high lows. The token had gained 1% as of the time of writing and was trading at about $0.71. Moreover, the token’s value had dropped by 8% prior to the trading session.

However, SAND’s strong bull trend had somewhat abated, according to the Relative Strength Index (RSI). A bull trend, albeit weak, was indicated by the RSI line, which was just over 50.

Source: Trading View

According to the metrics above, there were certain concerns raised by the steady drop in SAND’s value and the significant inflow into exchanges. A review of the unlock data provided some explanations for the recent price movement, but it was possible that this was not the only factor at play.

Token Unlocks‘ data suggested that The Sandbox will release 372,570,278 tokens within the next five days. As a percentage of the total, this token is worth 12.419%. The influx of funds into exchanges may reflect investors’ expectation of a token price decline once the locked token becomes available.

Overvalued SAND presents an opportunity

How profitable is SAND now as the unlock approaches and investors move to grab profits? The 30 365-day Market Value to Realized Value Ratio (MVRV) indicated that sellers could make a profit at this point. The 365-day MVRV was 48.60%, whereas the 30-day MVRV was 12.03%.

Source: Santiment

The dump may seem like negative news for the price movement of SAND, but there may be benefits as well. SAND is overvalued on the 365-day MVRV; a decrease would offer an excellent opportunity to enter the SAND position.

How much are 1,10,100 SANDs worth today?

Additionally, in a fresh development on 7 February, The Sandbox also disclosed a collaboration with the Saudi Arabia Digital Government Authority. According to Borget Sebastien, The Sandbox’s COO, and co-founder, the relationship is intended to activate the Metaverse.

Partnerships and announcements like these might aid SAND in climbing back up, especially with the upcoming unlock and probable price drop.