SuperRare suffers reversal due to weak on-chain data

SuperRare’s value noticed a pointy reversal as a consequence of profit-taking following the token’s parabolic rise of over 500% between August 5 and 15.

The SuperRare (RARE) token retreated to $0.2280, down greater than 34% from its excessive on Sunday, August 18. This downturn was primarily pushed by profit-taking, because the latest rise didn’t have a considerable catalyst. Moreover, the token fell after on-chain knowledge confirmed that SuperRare Treasury transferred 7.5 million tokens to Binance. Sometimes, shifting tokens to an change signifies an intention to promote.

Primarily, SuperRare and different Non-Fungible Token (NFT) platforms like OpenSea and Rarible are struggling as buying and selling volumes proceed to say no.

Information from Dune Analytics signifies that SuperRare’s month-to-month quantity has fallen to a file low. After reaching over $36 million in August 2021, quantity dropped under $1 million in July. This downward pattern over the previous two years led to the corporate having to cut back its workforce in 2023.

The identical goes for OpenSea’s month-to-month quantity decreased to $32 million in July, up from $643 million in February 2023.

Extra info from CryptoSlam reveals that international NFT gross sales quantity has fallen 37% over the previous 30 days, totaling $387 million. At its peak, the trade was dealing with billions of {dollars} each week, powered by in style collections like Bored Ape Yacht Membership, Azuki, Artwork Blocks and CryptoPunks.

SuperRare’s value surge additionally pushed open curiosity in futures to a file excessive of $112 million. Notably, the token had no open curiosity on the futures marketplace for a number of days this month.

SuperRare Value Evaluation

The every day chart reveals that the RARE value has gone parabolic and is trending on social media platforms resembling X and StockTwits. It peaked at $0.3460, the best degree since Might 2022.

Whereas rising, the token broke via the important thing resistance level at $0.2384, which was its highest swing in March this 12 months. The index additionally moved above its 50-day shifting common, whereas the Cash Movement Index rose to the overbought degree.

Contemplating these components, the outlook for the token seems bearish as many merchants may begin exiting their positions. If this pattern continues, the value may drop to the important thing help degree at $0.1626, which was the swing excessive on Might 12 and 30% under the August 19 low.