SAND is on the Move, with $8.00 back in View

After hitting an ATH $8.46 on 25^th November, SAND had been in reversal before finding pre-holiday support.

Upbeat metaverse news, however, has provided SAND with a new lease of life.

On Thursday, SAND surged by 23.3% to revisit $6.3 levels after having fallen back to $4.2 levels in early December. There was further upside on Saturday, with SAND rallying by 14.93%.

The latest surge has come off the back of favorable metaverse news. News of PwC Hong Kong buying LAND in the Sandbox was the key driver on Saturday. A Big-4 accounting firm entering the metaverse was big news and certainly put SAND back in the limelight.

PwC Hong Kong joins a growing list of big names entering the Metaverse. Recently, we also covered news of Chinese tech firms entering the metaverse. The moves came in spite of Chinese government warnings. Big names included Hua Wei Technologies Inc., NetEase, Tencent, and Hisense.

Some of the largest Chinese tech firms are among more than 1,300 firms that have applied for metaverse related trademarks.

When considering positive views shared by the likes of Bank of America, more upside is expected. A rejection of some or all of the trademark requests by the PBoC remains a downside risk for SAND. Sentiment towards the metaverse, however, is likely to soften the impact of regulatory action in China.

SAND Price Action

Recovering from a fall back to sub-$4.30 levels, it’s been uphill since then for SAND. Finding support at the 50 EMA mid-month, SAND has tested resistance at $7.00 this morning before easing back. SAND’s current month high sits at $7.03 struck on 1^st December.

Following Saturday’s rally, a break back through to $7.00 levels would support at run at $7.50 levels. Key, however, would be to break down resistance at the current month high $7.03.

Looking at the EMAs, we have seen the 50 EMA continue to pull away from the 100 and 200 EMAs this week. With the indicators pointing to more upside ahead, avoiding sub-$6.50 will be key.

At the time of writing, SAND was down by 0.51% to $6.67.