The Sandbox (SAND) has been capturing attention in the cryptocurrency market

Crypto investment firm Hashed has deposited 18.45 million Sandbox (SAND) tokens, valued at approximately $6.3 million, to Binance.

This news comes after Hashed withdrew 11.36 million SAND tokens from Binance at a price of $0.26 last month.

At the time of withdrawal, the investment firm also announced a new investment in blockchain gaming company Web3.

Since then, SAND has increased in price by 35%.

Today’s deposit of such a large amount of SAND to Binance could signal that Hashed is preparing to sell, which might put downward pressure on the price.

This is especially relevant given the increased trading volume observed after the deposit.

Immediately after the deposit, trading activity surged, with volume on the SAND/USDT pair jumping to over 25 million SAND in the subsequent hour.

This was significantly higher than the previous 24-hour average of 15 million SAND.

The heightened activity suggests that traders are reacting swiftly to the news, possibly anticipating a price movement.

From a technical perspective, the Relative Strength Index (RSI) is at 64 after briefly entering the overbought region on the daily chart, suggesting that while SAND has been on an upward trend, it is currently cooling off in anticipation of the next move.

The MACD is also signalling a retracement with a declining histogram and the MACD and signal lines converging.

If the price falls below the support at $0.31, we could witness a retest of the support at around $0.27.

However, if the $0.31 support holds and the resistance at $0.3627 is broken, the token could regain its bullish momentum, propelling it towards $0.41.

It’s important to note that the broader cryptocurrency market has been experiencing mixed sentiments, which could influence risk appetite for assets like SAND, although metaverse and gaming tokens, including SAND, have been gaining traction recently, driven by renewed investor interest in virtual reality projects.

Keeping an eye on trading volumes, technical indicators, and broader market sentiments will be crucial for those looking to capitalise on or hedge against potential price swings in the coming days.