• SAND rises 2.1% in 24 hours, showing early recovery signals.
• Price stability near $0.2046 supports a potential bullish reversal setup.
• The falling wedge pattern hints at an upcoming breakout toward $1.60.
• Open interest drops by 14.44%, showing traders’ cautious sentiment.

The Sandbox (SAND) has shown renewed signs of strength, maintaining a steady upward trajectory after an extended downtrend. Over the past 24 hours, the token’s price has climbed by almost 2.1%, while its weekly performance has remained stable.

At the time of writing, SAND is trading at $0.2046 with a market capitalization of $534.9 million, reflecting a 2% daily increase. However, its 24-hour trading volume fell by 41.19% to $49.24 million, signaling cautious participation among traders despite improving sentiment.

The price action indicates that SAND is stabilizing near a major technical level. Bulls appear to be defending the lower range of the falling wedge formation visible on the weekly chart. This structure often suggests the end of a long bearish phase and prepares the ground for a potential breakout. The price movement near $0.19 has acted as strong support several times, and the latest rebound suggests that selling pressure may be weakening.

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Falling Wedge Formation Signals Potential Reversal

The SAND chart shows a large falling wedge pattern that has contained price activity since late 2021. This setup features lower highs and lower lows within converging trendlines, creating a compression that often precedes a breakout. Recent candles around the lower boundary are beginning to show early signs of accumulation, suggesting that momentum might soon shift in favor of the bulls.

A confirmed breakdown through the wedge’s resistance line could provide the avenue to significant gains. Initial resistance is between $0.32 and $0.38, and then potentially on to the $0.55–$0.60 area.

Further bullish pressure could take it to the $0.95–$1.10 area, with long-term targets set to $1.60–$1.80 if the pattern is completed. With the opposite view, failure to remain above the $0.18 support would negate the setup and send prices down to the $0.13–$0.15 area, where fresh buyers may reappear.

SAND Market Sentiment and Open Interest Trends

Open interest has slipped by 14.44% to $30.36 million and suggests that traders are closing longs or refraining from new exposure due to indecision. Reduced leverage and hedge-on sentiments are behind the fall. However, regular action at these levels suggests that participants retain interest in SAND and remain alert for the breakout-based market action.

The OI-weighted funding rate is at -0.0060%,  indicating that short positions are paying longs, and this is an indication of soft bearish pressure. This reflects an indication that the market is still apprehensive but not negatively pessimistic. A turn to positive funding will affirm solid bullish momentum and draw fresh interest towards an expected SAND price breakout.

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