Assets covered: The Sandbox (SAND)

Metrics used: Daily Active Deposits, Exchange Inflow, Network Profit Loss, MVRV, Age Consumed, Whale Transactions Count, Holders Distribution

Charts layout: https://app.santiment.net/charts/sandbox-july-2021-overview-6148

NFT segment been on fire lately. It's marketcap surged by around 30% last week, compared to 10% surge in DeFi segment. We've already covered AXS, a first token managed to break ATH this season. Today we're looking at SAND.

Bearish signs

1. Daily Active Deposits

They are starting to spike. More and more holders depositing to exchanges. More people starting to take profits. If this is going to continue it could probably impact the price in a negative way. We are seeing that in NPL and EI as well 👇

2. Exchange Inflow & Network Profit Loss

Spikes in both metrics simultaneously indicating that people are slowly moving to take advantage of the rally. Not massive, could be larger. Still suggesting that we're moving into the overvalued territory. Same with 👇

3. MVRV

We're moving into an established danger zone. To MVRV values corresponding to previous tops. Generally it seems that these levels are pretty unsustainable. They last for a couple of days and then dump happens. Generally speaking we are probably due to a short term correction at the very least.

4. Age Consumed

There are not big spikes to be fair. But they are clustered together. Yes, there is some activity from previously dormant coins, it's just not solitary spike which actually makes more sense. Because the price is rising steadily and with every new high there is another sort of conglomerate of long term holders that are looking to sell.

5. Whale Transactions Count

We're starting to see whale transactions piling up. An uptick in large addresses starting to move coins. Which historically often coinсides with price tops.

And a couple of bullish signs

1. Same Network Profit Loss, zoomed in

Not a bad set up. The latest dips are good signs for a potential bounce back. At least in the short term.

2. Whales (Holders Distribution)

From 100k to 1m SAND - this is an interesting group. May be the most representative of mid scale whales. And they seem to be accumulating. Perhaps it could be indicative of the whale sentiment.

TLDR:

High risk, low reward.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.