Understanding the Performance of Top NFTs This Week

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Non-Fungible Tokens. What an amazing couple of weeks it has been for these crypto asset classes. Before going into the details, let’s quickly understand what they are and go through some important events concerning NFTs in the recent past.

What are NFTs?

NFT is essentially a cryptocurrency that can be used as proof of authenticity. In contrast to the fundamental purpose of cryptos which is to act as a mode of exchange, the use cases of NFTs are different. These asset-verified tokens use blockchain technology and offer the buyers proof of ownership and authenticity. However, at this point, the craze for these NFTs is mostly for digital assets such as images, songs and videos. Creators from various streams such as art, music, writing, etc., can use NFTs to monetize their digital products.

The primary problem that NFTs could solve is provenance and authentication of artwork which is the need of the hour. In other words, these tokens permanently link a digital artwork, be it anything, to its original creator using blockchain technology.

Artists can also create something and make that exclusive to their fanbase by pegging that to an NFT. For instance, Kings of Leon is pairing their next album with an exclusive NFT. Using that, fans get to access four seats, tons of merch and many other perks. Currently, these NFT tokens can be bought in most of the popular exchanges in the market.

Instances That Made NFTs Popular

19^th Feb – Flying Pop-Tart Cat got sold for over half a million dollars.

22^nd Feb – A fan bought a video clip of the famous Lebron James Slam Dunk for over $200k. 

28^th Feb – Grimes, a popular musician and Elon Musk girlfriend, sold some of her animations for over $6 million.

5^th Mar – Jack Dorsey’s (founder, Twitter) first-ever tweet is up for sale (Auction ends on 21^st Mar). 

11^th Mar – Beeple’s collage of ‘Everyday, The First 5000 Days’ got sold for over $69 million.

Now let’s take a look at the top three NFT cryptos’ technical analysis in terms of market capitalization. 

ENJUSD Technical Analysis – Daily Timeframe | 4 Hour Timeframe 

One of the most prominent NFT coins Enjin has enjoyed meteoric rises in the past weeks taking it above the $1 billion market cap.

On the daily timeframe of ENJ/USD asset class, there is no psychological level resistance. We can see the abnormal growth of this NFT in the past few days. The previous technical resistance was at 1.7397, and the price did breakout through that level a couple of days ago, making a higher high. This level might turn into possible support on the daily timeframe. As it is visually clear, the move is parabolic, with the price shooting to the north, making new highs.

Note that there could be a potential round-number resistance at 2.50000.

On the 4-hour timeframe, the sellers are trying hard to make a comeback. We can consider this as the start of a sell rally. The possible support for the price in this timeframe could be at 1.7026. It can also be at 1.7397, which is coming from the daily timeframe. Selling at this point is very risky because there is no proper confirmation on the market sentiment yet. However, buying from here can be quite exciting. According to the price action and technical analysis, buying at the best price, i.e., at the support levels of Daily & 4-Hour Timeframe (1.7397 & 1.7026), is a suggestable move.

If you plan to go long on this pair, make sure to have an eye on the seller momentum. Ensure that they are arriving slowly in terms of volume, momentum and strength. There is a strong possibility of a potential buy setting up at the 4-hour support area.

THETAUSD Technical Analysis – Daily Timeframe | 4 Hour Timeframe 

The Theta NFT token’s value grew by over 150% in the past few days. Now let’s quickly analyze the price charts of this asset class. The strong support level for this token on the daily time frame is at 3.3651. There is no psychological level resistance on the daily timeframe for Theta as well. It is a clear bull run, and no other accurate assumptions can be made looking at the daily chart.

On the 4-hour time frame, the level resistance is at 7.0204, and temporary support is at 6.2541. It seems like a temporary bearish sentiment in this token at this point. If the sellers take over from here, the strong support zone for the price could be at 4.4036. And if the sellers manage to break that as well, we have the support from the daily timeframe at 3.3651.

Overall, on par with other NFTs, there is a strong bullish sentiment for the Theta coin in the market. If you are willing to go long on this one, make sure, the seller momentum is low and take note of these key support and resistance levels. 

CHZUSD Technical Analysis – Daily Timeframe | 4 Hour Timeframe 

The same has been the case with Chiliz Non-Fungible token. CHZUSD asset class have grown over 100% since the hype around NFTs began to raise in the past couple of weeks. The market seems to be extremely bullish both on the daily and 4-hour timeframes. The potential support level on the daily timeframe is at 0.2669, and it is at 0.3697 on the hourly timeframe.

We can see the formation of a Bearish Spinning Top Doji candlestick on the 4-hour trading timeframe. This means that both the buyers and sellers had equal power even for a small amount of time. Going long with careful observation of seller momentum should be a great idea in this pair.     

Overall, it is clear that top NFTs are on a strong bull run. Thinking of jumping on the trend and taking advantage of this bullish market sentiment? You can buy TETHA and ENJ tokens on our website for the lowest possible price. Consider checking them out. Cheers!

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