LooksRare catapulted to fame because the rival NFT market treading on OpenSea’s toes. Whereas critics have taken purpose at it for the quantity of wash buying and selling it permits, LooksRare has one thing that OpenSea customers have been wanting for a really very long time: a local token.
Appears like a catch
You is likely to be tempted to disregard the LOOKS token when you aren’t an NFT collector or into metaverse belongings, however an evaluation by Santiment famous that LOOKS might need extra to supply than. . .nicely, simply seems and glamor.
? $LOOKS peaked immediately at +175% because the March #FOMC assembly. Provide on exchanges is growing this previous week, energetic deposits & withdrawals are each up considerably, and growth exercise seems to correlate with value. Learn our newest perception! ? https://t.co/KncfPZoRr7 pic.twitter.com/wRQ3dQkuEV
— Santiment (@santimentfeed) March 31, 2022
Santiment identified LOOKS’ greater than 175% rally since mid-March and noted,
“We’re additionally seeing big quantity coming on this week, which noticed value pushing greater (trying wholesome to this point). What we don’t wish to see is a a divergence of value and quantity (greater value with low quantity).”
Certainly, commerce volumes have been spiking since 26 March, simply as LOOKS rallied. Nevertheless, the change provide has been largely transferring sideways and isn’t too removed from the place it was in early February. This seems to recommend that whereas LOOKS is seeing attention-grabbing tendencies, these aren’t triggering important modifications in investor exercise. Weighted sentiment, which was barely unfavourable at press time, additionally appeared to agree with this.
Supply: Santiment
In the meantime, a take a look at the Relative Power Index [RSI] tells us that LOOKS briefly crossed into the overbought territory, indicating that traders have been overvaluing the asset. Nevertheless, at press time, it was underneath the 70.00 line. That being stated, the indicator is on an upward pattern.
Supply: TradingView
For extra context, it’s a good suggestion to research the efficiency of the LooksRare NFT market in March 2022. Each day volumes have been steadily falling since February 2022 and by the top of March, OpenSea and LooksRare have been seeing related day by day volumes. This is likely to be one issue that might dissuade traders from including LOOKS to their portfolio – even when it’s doing nicely.
Supply: Dune Analytics
Airing soiled laundry?
LooksRare has been dismissed due to its large volumes of wash buying and selling that helped it eclipse OpenSea’s personal stats earlier this 12 months. Nevertheless, soiled laundry apart, Coinbase’s evaluation of the asset in February revealed,
“…the remaining authentic NFT quantity continues to be greater than what NFT marketplaces Rarible, SuperRare, Basis, Makersplace, and Aysnc did in all of 2021 combined.”
For that motive alone, traders can be well-advised to keep watch over LOOKS to see if it is going to proceed to rise – or fall onerous.
