$SAND Technical Review

This week we learn about building in The Sandbox with an analysis of the $SAND metaverse token, and consider how blockchain-powered games could bring GameFi together with Refi, to educate game-heads about the regenerative economy and create incentives for playing a good game.

2 years ago   •   4 min read

By Romain NEBOIT

Hello Earth Citizen, welcome to this week's token analysis.

We are going to explore what's moving in the state of the Metaverse and GameFi, by looking at The Sandbox and its native token $SAND.

A user-generated Metaverse game

The blockchain game phenomenon is rapidly gaining popularity. A blockchain game, also known as a crypto game or a metaverse, uses blockchain technology to create a virtual world that is decentralized and allows players to earn cryptocurrency rewards.

The Sandbox is one of the most popular blockchain games on the market, allowing players to create and share their own unique 3D experiences with others. The Sandbox also has its own virtual currency, $SAND, which can be used to purchase in-game assets and participate in the game's economy.

One of the unique benefits of The Sandbox is its steady growth due to community participation in its development. With over 1 million registered users and 400,000 monthly active users, The Sandbox is well on its way to becoming the premier blockchain-based game platform.

The Sandbox was developed by Pixowl in 2011 with the vision of giving users a unique gaming experience. By combining a DAO with NFTs, The Sandbox gives users complete control over their gaming experience.

The Sandbox Game Maker allows users with no prior coding experience to create games for free.

“Land” is a form of digital real estate in the Metaverse, which users have to buy to build interactive experiences. Each Land in the Metaverse is a unique NFT token on the Ethereum blockchain. Estates on the platform are collections of Land. Each Land represents 96 X 96 meters of the virtual Metaverse.

The Sandbox aims to overcome the limitations of a centralised gaming marketplace. The voxel gaming platform provides the ability to create games, play them, share creations and collect or trade in game items without a central authority. Each in-game item has a unique, non-fungible blockchain identifier that confirms the authorship.

Still, the token’s prospects depend on the project’s development dynamics and the cryptocurrency market sentiment. While it is difficult to make accurate forecasts on the latter, one can analyse the prospects for the project’s development from the roadmap and plans for this year:

• In Q2, the launch of a DAO and staking.
• In Q3, an extensive advertising campaign.
• In Q4, the launch of the game’s mobile version is planned.

As we can see, the project's team has serious plans for 2022. Thus, it is worth monitoring the project’s development. If development takes place as planned, then the project has a chance to expand its influence and attract millions of users in the next five years.

$SAND Technical Analysis:

All prices shown are as of 27/04/2022 at 08:45 UTC

Weekly Chart:

Prices retraced, logically, after the strong beginning last year. We’re clearly in the 4th Wave, according to the Elliot Wave Principle. That would say we still have a Fifth Wave of uptrend to come.

But first, let's look at retracement. The retracement of the 4th Wave usually retraced to a 61.8% Fibonacci Retracement objective. So a technical objective would be at $USD 1.8166. If the retracement is stronger than expected, then lower supports are still here to hold prices and to allow investors that waited for this moment, to get in this market.

If we take a look with Ichimoku, I’d say that prices are neutral; they are below the Weekly Kijun but still above the Weekly Cloud, for the moment. The Weekly Tenkan is the very first resistance to break for expecting going higher. Then, the $USD 4.33 resistance will be the big target, multiple technical points such as Kijun, SSB and Tenkan (Weekly and Monthly) so this is the big one to break.

Let’s zoom in the Daily Chart.

Daily Chart:

According to this Daily Chart, prices are definitely bearish in the short term.

With the same pattern as the Weekly Chart, the Daily Tenkan block prices during this retracement, the breakout of this one is necessary for going higher.

As support, these ones remain the same than the one I presented before. So we need to look at these ones and be prudent until a bullish signal comes!

Note that the RSI doesn’t have any bullish divergence, so this downtrend isn’t over yet, in my opinion.

In Summary

ReFi projects are gaining traction as an alternative to traditional financial products and services. Given that blockchain game finance (GameFi) is also growing in popularity, it makes sense to explore the potential for integrating ReFi with GameFi, to attract even more people to this revolutionary way of thinking about finance.

What could be more attention-grabbing for game-heads than blockchain-powered games that educate users about the regenerative economy, whilst offering players the incentive of earning yields on their in-game assets, to do good for the planet?

As far as the market potential for The Sandbox, there are a lot of projects competing in this space and $SAND will have to be strong for this project to remain at the top of this new Metaverse market category!

See you next week and please do play safely in the markets!


Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. For tax advice talk to your accountant. DYOR – do your own research.

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