The $10k sale was likely an investor purchase. Obviously then niche for this name is daily horoscopes based around the 12 Zodiacs Signs.
In terms of value your ask of $1.2 million at first glance appears to be on the high side but if you take into account it's search value then it becomes more reasonable.
Semrush.com shows that"Zodiac Signs" is searched 4.2 million times per month globally with a cpc of $1.29(real cpc is probably lower.)
That to me is very valuable information as even conservatively the domain might save a business in the niche at least $xxx,xxx in ads. The often used Roesener equation would most likely result in a valuation in excess of 8 figures in pure search value given those statistics.
Another factor is the type in traffic. Currently the domain with a simple landing page and zero development has an Alexa rank in the 3 million range. I estimate at least 500-1k unique type-ins daily to the domain and I would not be surprised if it's currently several multiples of that. There is a lot of value in guaranteed traffic. Who ever ends up building it out will have a high volume of traffic to build on from day one.
My valuation:
Retail:
$350k to $888k
Great buy back in 2012... at the time you purchased it I doubt it was on the market for more than a few hours/days as it was an absolute steal.
This is an endgame type of name to upgrade to for some businesses in the horoscope niche. I would hold until some one is willing to pay about 2/3 of your ask.