Market
Sales Drop and Worst Performing Sector
Non-fungible tokens (NFTs), once hailed as the future of digital collectibles, experienced a sharp downturn in June. According to the crypto analytics platform Artemis, the NFT sector recorded the worst performance among 21 sectors, with a staggering 51.5% decline.
This trend raises concerns about the sustainability of the NFT market.
Sales Slump Across Major Blockchains: Can NFTs Bounce Back?
The decline is further evidenced by data from CryptoSlam, which shows a 46.03% decrease in NFT sales volume, amounting to $480 million over the past 30 days. Major blockchains like Ethereum, Bitcoin, and Solana saw NFT sales plummet by 38% to 50%. This significant drop has led to speculations about the causes behind the fading enthusiasm for NFTs.
Read more: How To Start NFT Trading: A Step-by-Step Guide
Several factors contribute to the current state of the NFT market. Paul Thomas, Founder and CEO of Somnia, noted that the initial hype around NFTs has diminished.
“Utility is becoming more important than ever for NFTs. […] One of the big problems with NFTs is that everyone just tries to repeat and copy what was previously successful. […] For projects to really make an impact, they need to be doing something exciting and original instead of just following the hype,” Thomas said.
Adding to the challenges, the floor price of prominent NFT collections like Bored Ape Yacht Club (BAYC) fell below 10 ETH earlier in June. This dip was exacerbated by notable figures such as Mark Cuban offloading multiple NFTs from their collections. These actions sparked further concerns about the long-term viability of the NFT market.
Despite the downturn, the NFT sector is not all bleak. Some collections, such as Pudgy Penguins and Milady Maker, recorded significant sales volume increases. Additionally, the Ronin blockchain saw a notable rise in NFT sales, indicating that certain niches within the market are still thriving.
Taha Abbasi, CTO of Ferrum Labs, also believes that the NFT sector will likely regain attention as the industry evolves. He believes that some of the key innovators in the NFT industry, like Yuga Labs and Igloo, are strategizing on ways to re-emerge.
“Perhaps the days of overhyped pixelated NFTs are over, and some other media integration or innovation might soon place digital collectibles in the limelight. NFT innovators need to do something drastic that would help the niche stay afloat,” he told BeInCrypto.
Read more: 7 Best NFT Marketplaces You Should Know in 2024
This insight and the resilience of certain collections and platforms offer hope. Although the broader market may struggle, these dynamics suggest that specific projects and platforms could still attract interest and investment.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Traders Show Confidence in Solana Recovery After Sub-$260 Dip
On November 23, Solana’s (SOL) price hit a new all-time high, sparking speculation that the altcoin could rally as high as $300. While that did not happen, recent data shows that Solana traders are betting on a rebound.
Why are traders confident? This on-chain analysis explores whether these positions could deliver gains or if many are at risk of liquidation.
Solana Longs Keep Shorts Out of the Way
Data from Coinglass reveals that Solana’s Long/Short ratio on the 1-hour timeframe has climbed to 1.17. This ratio gauges market expectations, indicating whether most traders hold bearish or bullish positions.
When the ratio falls below 1, it indicates more shorts (sellers) than longs (buyers). Conversely, a ratio above 1 suggests a higher number of traders betting on a price increase compared to those anticipating a decline.
Currently, 54% of Solana traders hold long positions, while 46.17% expect a drop below $255. This indicates a bullish leaning among traders, with more optimism about the token’s price rising than falling.
Additionally, it appears that these traders’ positions could prove profitable, thanks to an uptick in Solana’s Transaction Rate, which is the number of successful transactions processed per second on its blockchain.
An increasing Transaction Rate signals heightened user activity and engagement with the cryptocurrency, while a decline indicates reduced interest. According to Glassnode, Solana’s Transaction Rate has been climbing. If this trend continues, it could propel SOL’s price past its all-time high.
SOL Price Prediction: Upside Potential Remains
On the weekly chart, Solana’s price has surged above the 20 and 50 Exponential Moving Averages (EMAs), key indicators that measure trends. When the price sits above the EMAs, it signals a bullish trend, while a drop below them typically signals bearish momentum.
With SOL currently priced at $255, above both EMAs, the altcoin seems poised to continue its upward direction. The formation of a bull flag further supports this bullish outlook.
A bull flag is a continuation pattern, indicating that once the price breaks out, it’s likely to maintain the prior upward momentum. As seen below, SOL has already broken out of the consolidation pattern and is heading higher.
As long as the price remains above the upper trendline of the consolidation phase, it could rise toward $325. However, if selling pressure takes hold, this bullish scenario could shift. In that case, SOL might fall below $200.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Why Are Shiba Inu Holders Selling Their Coins?
The meme coin mania of the past few weeks pushed Shiba Inu’s (SHIB) price to an eight-month high of $0.000030 on November 12. Due to this hike, a significant portion of SHIB’s supply is now profitable.
However, as market sentiment shifts, many Shiba Inu holders are now opting to secure their gains by selling their SHIB coins.
Shiba Inu Holders Sell For Profit
According to IntoTheBlock’s Global In/Out of the Money indicator, 829 trillion SHIB coins held by 851,000 addresses, which comprise 62% of all the meme coins holders, are “in the money.”
An address is considered “in the money” when the current market price of the asset it holds is higher than the average acquisition cost of the tokens in that address. This indicates that the holder would realize a profit by selling their holdings at the prevailing market price.
On the other hand, 82.39 trillion SHIB coins held by 398,000 addresses are “out of the money.” These are addresses that currently hold their coins at a loss.
With 62% of all its holders now in profit, there has been a resurgence in profit-taking activity. This is reflected in SHIB’s declining Chaikin Money Flow (CMF). As of this writing, this indicator is at 0.08, trending downward toward the center zero line.
The CMF measures the market’s buying and selling pressure. When it falls toward the zero line, it signals weakening buying momentum, indicating that market participants are losing conviction in the uptrend.
Additionally, the setup of SHIB’s moving average convergence divergence (MACD) indicator confirms this bearish outlook. At press time, the coin’s MACD line (blue) rests below its signal line (orange).
This indicator measures an asset’s price trends and momentum and identifies its potential buy or sell signals. When the MACD line falls below the signal line, it indicates a bearish trend and confirms the reversal of an uptrend. It suggests that selling pressure is increasing, and the asset’s price could decline further.
SHIB Price Prediction: A Decline To $0.000020?
SHIB is trading at $0.000025, marking a 4% decline in the last 24 hours. It remains above key support at $0.000022. If SHIB falls below this support, its price could drop further to $0.000020.
On the other hand, if profit-taking activity relaxes and the meme coin witnesses a resurgence in new demand, it will break above resistance at $0.000026 to reclaim its eight-month peak of $0.000030.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Will the MANA Crypto Price Rally End After a 70% Weekly Surge?
MANA, Decentraland’s native cryptocurrency, has seen an impressive 70% price increase over the past week. This MANA crypto price surge is part of a broader rally in Metaverse-related tokens, which has caught the attention of the market.
While the development might have surprised some, a closer look by BeInCrypto provides insights into the catalysts behind this movement. This on-chain analysis looks at what could be next for the token.
Decentraland Active Addresses, Volume Reach New Heights
The recent rally in MANA crypto price can be attributed to a significant increase in the token’s active addresses, which indicates heightened user interaction on the blockchain. Interestingly, this also matches the condition of The Sandbox (SAND), which was also one of the frontrunners of the Metaverse revival.
Active addresses measure the number of unique users successfully completing transactions. A rise in this metric signals increased engagement with the network, which is often considered bullish for a cryptocurrency. Conversely, a decline implies reduced traction, which is typically seen as bearish.
On November 20, MANA’s active addresses were around 810. Fast-forward a few days, and this figure has surged nearly fivefold, reflecting a growing interest in the token. This spike in activity likely provided the momentum for MANA’s price to climb from $0.40 to $0.70 — the highest level since March.
Following the development, Santiment data showed that MANA’s volume climbed to $1.57 billion. Volume represents the total value of a specific cryptocurrency traded over a defined period.
This metric reflects a coin’s level of activity and liquidity. A high trading volume indicates notable buying and selling, which often suggests strong market participation. On the other hand, low volume may signify reduced activity, leading to weaker market interest.
Therefore, the hike in the token’s volume validated the signs shown by the active addresses. However, since MANA’s price has dropped from its recent peak, it could be challenging to keep up with the uptrend, with this analysis suggesting that another pullback could be close.
MANA Price Prediction: Pullback Imminent
From an on-chain perspective, the MANA crypto price rally might have hit a local top. This prediction is based on the signs shown by the In/Out of Money Around Price (IOMAP).
The IOMAP is a key metric that analyzes the distribution of cryptocurrency holders based on whether their holdings are in profit, loss, or at breakeven. It also provides insights into potential support and resistance levels in the market.
When there are large clusters “out of the money,” this indicates addresses holding at a higher price than the current market value. Such areas often act as resistance. Conversely, Large clusters “in the money” typically act as support, as holders may buy more or hesitate to sell, expecting further price gains.
For MANA, approximately 36.47 million tokens held by addresses that accumulated near $0.70 are currently “out of the money.” This volume surpasses the tokens held between $0.61 and $0.68, marking that range as a key resistance zone.
As such, the MANA crypto price might experience retracement. If that is the case, then the cryptocurrency’s value could drop to $0.61 in the short term.
However, if buying pressure increases and volume outpaces the one at $0.70, this might not happen. Instead, MANA could climb to $0.80.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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