SAND price readies for a crash after The Sandbox moved 120 million SAND to exchanges

Like in the past few weeks, The Sandbox (SAND) is descending the stairs. With the Relative Strength Index (RSI) pointing south and the Accelerator Oscillator (AO) histogram in negative territory, momentum is steadily declining. SAND may further collapse, testing the support level at $0.3687 or lower to gather selling liquidity, which would result in a 5% drop from the current level.

SAND/USDT 12-hour price chart, source: TradingView.

Furthermore, some fundamental factors support the bearish argument, including open interest and value transfers. Recent data from Etherscan indicates that The Sandbox distributed and transferred as much as 120 million SAND tokens to 0x73b4B4290038e22003f241DE95341dC66846d358. At the current price, this amounts to approximately $47.62 million.

Within this batch of tokens, over 86 million SAND has been transferred to centralized exchanges (CEX). Whenever tokens are moved to exchanges, it often signals an intention to sell, supporting the aforementioned bearish sentiment.

Additionally, as shown in the following chart, SAND open interest is growing while its price is in a downtrend. This suggests a strong bearish trend as there are more traders shorting SAND than longing it. In simple terms, there is more selling pressure than buying pressure.

Open Interest Chart for SAND, Source: TradingView.

Note that as The Sandbox price declines, new contracts dominated by shorts continually emerge, potentially causing an excessively bearish market. However, if the 12-hour candle closing price for this metaverse game token is above the 200-day moving average of $0.4631, this bearish argument would be invalidated.