LooksRare catapulted to fame because the rival NFT market treading on OpenSea’s toes. Whereas critics have taken purpose at it for the amount 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 may need extra to supply than. . .effectively, simply seems to be and glamor.
👀 $LOOKS peaked in the present day at +175% for the reason that March #FOMC assembly. Provide on exchanges is growing this previous week, energetic deposits & withdrawals are each up considerably, and improvement 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. Nonetheless, the trade provide has been largely transferring sideways and isn’t too removed from the place it was in early February. This seems to counsel that whereas LOOKS is seeing fascinating traits, these are usually not triggering important modifications in investor exercise. Weighted sentiment, which was barely detrimental at press time, additionally appeared to agree with this.
In the meantime, a have a look at the Relative Energy Index [RSI] tells us that LOOKS briefly crossed into the overbought territory, indicating that buyers had been overvaluing the asset. Nonetheless, at press time, it was below the 70.00 line. That being stated, the indicator is on an upward pattern.
For extra context, it’s a good suggestion to analyze the efficiency of the LooksRare NFT market in March 2022. Day by day volumes have been steadily falling since February 2022 and by the tip of March, OpenSea and LooksRare had been seeing related each day volumes. This is likely to be one issue that might dissuade buyers from including LOOKS to their portfolio – even when it’s doing effectively.
Airing soiled laundry?
LooksRare has been dismissed due to its huge volumes of wash buying and selling that helped it eclipse OpenSea’s personal stats earlier this yr. Nonetheless, soiled laundry apart, Coinbase’s evaluation of the asset in February revealed,
“…the remaining respectable NFT quantity continues to be greater than what NFT marketplaces Rarible, SuperRare, Basis, Makersplace, and Aysnc did in all of 2021 combined.”
For that cause alone, buyers could be well-advised to regulate LOOKS to see if it’ll proceed to rise – or fall arduous.