Crypto-bulls are again whereas the NFT market remains to be going sturdy. LOOKS, the cryptocurrency native to the LooksRare NFT platform, is one which traverses each segments.
LOOKS, at press time, was buying and selling at $2.66 following a formidable hike from its 24 February 2022 low of $0.79. Merely put, the altcoin appreciated by 233% . Its newest run kicked off on 22 March. Price noting, nonetheless, that regardless of its uptrend, LOOKS has a protracted solution to go earlier than breaching its earlier all-time excessive of $7.08.
As anticipated, the crypto’s sturdy rally coincided with a major uptick in buying and selling quantity, particularly over the past two weeks. Actually, it additionally corresponded with a provide drop in exchanges from round mid-March – An indication that promoting strain fell throughout the board so far as the alt is worried.
Supply: Santiment
When checked out intently, a declining sample within the crypto’s provide on exchanges might be seen from round 22 March. Curiously, this additionally occurred to be across the identical time that the challenge’s developer exercise metric registered a robust uptick. This metric is often an indication of confidence within the long-term well being of a challenge, one which isn’t all the time tied to the worth appreciation or depreciation of the crypto itself.
Actually, the identical peaked on 29 March after LooksRare introduced the launch of LOOKS Compounder.
Lastly, in keeping with Santiment,
“LOOKS’s MVRV 7D which measures the short-term revenue/lack of holders is displaying that we now have entered the hazard zone, which traditionally noticed short-term holders who’re nicely in revenue….take some off the desk.”
Supply: Santiment
Why LOOKS Compounder is such an enormous deal for LOOKS’s worth motion
LOOKS Compounder is a instrument that mechanically converts WETH into LOOKS. To many, it’s promised as one of the simplest ways to avoid wasting on gasoline charges. On the again of the stated replace, LooksRare additionally revealed that greater than 45 million LOOKS (value $119.7 million) have already been staked. What this implies is that roughly 18% of the cryptocurrency’s press time market cap of $657.3 million has been staked.
Ergo, the query – Is the uptrend within the crypto’s worth motion too good to final? Effectively, in all probability so.
Technical indicators such because the RSI and MFI appear to recommend that it’s at the moment overbought and could also be due for a correction. Even so, its long-term worth motion seems promising, particularly contemplating current developments and the challenge’s progress.
