After a bloodbath for most of January. Sandbox (SAND) is starting to crawl back some of those losses. The token closed in the green during the three most recent trading sessions. This suggests that a trend reversal may be taking place. We will explain why you should remain cautiously optimistic despite all this. First, some highlights:

• At the moment, Sandbox (SAND) has rallied 40% higher compared to its lowest price during the January downtrend.

• Despite this, the metaverse token is still nearly 65% down for its ATH recorded in 2021.

• Despite the rally, technical indicators indicate that Sandbox (SAND), still has bearish momentum.

Data Source: Tradingview.com

Sandbox (SAND) – Price analysis and action

Investors in Sandbox (SAND), have been optimistic that the token may be about to reverse its downward trend over the last three days. Although this may be true in part, there are still important indicators that indicate the token is not yet out of the woods.

For example, even with the rally the past three days, Sandbox (SAND) is still below the 100- and 50-day moving average, suggesting a bearish outlook in the near term. The RSI readings suggest that there is still a lot to be sold.

In a nutshell the three-day rally feels more like a dead cat bounce. It’s still a positive thing. However, we expect Sandbox to revert to its downtrend in the near future.

Should you buy Sandbox (SAND)

It depends on whether you wish to be exposed to metaverse tokens. These tokens are certain to be huge in the future, based on current crypto trends. If I was you, I’d wait for Sandbox (SAND), to correct. This way you do not have to take any downside risks and also enjoy a discount on your purchase.