$SAND Current price: 0.086, up 30.8% in 24 hours. Over two days, it climbed from 0.05 to 0.088.
Background: The Sandbox is a virtual-world gaming platform on Ethereum, launched in 2020. It peaked above $8.4 in 2021. Since then, it has steadily declined, and its market cap is now around $256 million.
Why did it suddenly surge?
① South Korea’s exchange lifts alert: After a cross-chain bridge attack in August, Upbit and other exchanges suspended deposits and withdrawals and issued warnings. The warning was lifted on October 2, removing the biggest bearish overhang, and the token surged 62% that day.
② Short squeeze: Negative funding rates and rising open interest forced shorts to close their positions, triggering a squeeze.
③ There’s also a catalyst to watch in October: Sandbox Studio (an AI game engine) is about to launch publicly.
⚠️ Risk reminder
· Daily RSI is already at 81, extremely overbought, with significant short-term correction pressure
· This rally is driven by bad news being priced in and a short squeeze, not a fundamental reversal
· User activity has not increased in tandem
Key levels
Resistance above: 0.088
Support below: 0.075; if it breaks, watch 0.065
What do you think?
Is this rally sparked by the Korean exchange lifting its warning a recovery in value or short-term speculation? Let’s discuss in the comments.
This is not investment advice. DYOR.