SAND has broken the downtrend! Can the bulls regain the $0.20 level?

The Sandbox (SAND) just recorded a daily price increase of 13.24%, amid a surge in trading volume of over 113%. This achievement helps SAND stand out in the cryptocurrency market, which is under heavy pressure as Bitcoin drops below the $90,000 support level and Ethereum loses the $3,000 mark, reinforcing a defensive sentiment on key assets.

Although overall confidence is shaken and a broad weakening trend is spreading, SAND continues to attract attention due to increased trading volume and participation in derivative products. Traders are now more selective, shifting towards early-recovery altcoins rather than following the overall market trend. This divergence puts SAND in the spotlight as investors reassess their positions and strategies beyond Bitcoin and Ethereum during high volatility periods.

SAND Breaks Long-Standing Downtrend

On the daily chart, SAND has broken out of a multi-month downtrend channel, marking a significant structural turning point. The price has surpassed the descending resistance zone, which previously restrained recovery efforts. This move indicates that buyers have regained clear control of the market.

The breakout occurred after a consolidation phase around the $0.11 demand zone, where downward momentum waned. As the price regained the average level around $0.15, higher lows began to form, helping to bring the $0.20 zone back into potential target range rather than just a distant resistance level. This suggests that sellers no longer dominate the price structure, shifting market focus toward continued growth expectations.

Source: TradingView Momentum indicators also reinforce this trend: MACD remains above the signal line, the histogram steadily expands, reflecting increasing buying pressure. The Parabolic SAR is below the current price, confirming the bullish trend signal. The consensus among these indicators indicates strong buying control without the need for sudden spikes. However, to confirm the trend, further price action needs to be monitored in the coming period. Nonetheless, current consensus supports the belief that SAND’s breakout is based on a strong trend foundation, not just temporary volatility.

Capital Outflows from Exchanges – Holders Continue Absorbing Supply

Spot trading volume remains negative, indicating continuous absorption of supply during the price increase. At the time of reporting, SAND has approximately $442,000 withdrawn from exchanges, reflecting a trend of tokens being steadily taken off exchanges rather than being sold back into the market. This action suggests holders are optimistic about further upward movement rather than seeking short-term profits.

Notably, the outflow coincides with a significant increase in trading volume, highlighting its importance. Buyers are absorbing liquidity without triggering strong sell-offs, while withdrawal speed remains stable, indicating strong confidence rather than accumulation driven by fear.

Source: CoinGlass This helps keep selling pressure low, maintaining price stability above the newly established support levels.

Leverage Increase – Traders Are Growing Their Positions

Regarding leverage, open interest (OI) has increased by 8.33% to $48.7 million, confirming that derivatives traders are actively expanding their positions alongside the strength of the spot market. The rise in open interest amid price expansion often reflects growing market confidence. However, leverage also carries volatility risks if momentum stalls, but currently, trading positions remain controlled with no signs of overheating.

Source: CoinGlass Funding rates remain stable, indicating traders prefer to continue the trend rather than short-term speculation. The gradual increase in leverage helps reinforce the bullish trend without causing concerns of overheating. Overall, derivatives participation currently supports SAND’s upward structure.

Outlook for Breakout – SAND Continues to Attract Attention

SAND is well-positioned to break through recent resistance levels, supported by consensus momentum signals, sustained exchange outflows, and increasing derivatives activity. Although the overall market remains weak, SAND’s ability to attract volume and leverage suggests confidence in a broader recovery phase, favoring continued price gains rather than just short-term rebound.