BTC, ETH and NFTs
While Bitcoin is failing to impress after landing its $66,999 new ATH placed on Wednesday, October 20th, ETH has been staging its own rally to combat its previous ATH set back in May. ETH posted a peak of $4384 almost a month after Bitcoin landed its historic previous ATH on April 14th, 2021.
ETH broke its May ATH earlier today, marking a 66% run-up from the low of $2651 near the end of September. Why does this matter? Two reasons:
1: ETH has partly decoupled from Bitcoin and no longer relies on Bitcoin to advance in price.
2: ETH is the majority holder of NFT Projects worldwide. More NFTs are on the ERC-20 platform than SOL, FTM, ADA, BSC, etc.
And that is what brings us into the NFT conversation for this weekend.
The Coins of NFTs
Yesterday, someone spent $500M on an NFT, renewing the conversations about what an NFT may actually be worth. Now, that was not the driving force for these NFT Tokens but it certainly did not slow them down. Every NFT related (The Top 11 by MCAP according to CMC) is in the green for the last 24-hours except for DGB which is down less than a percent.
This weekend is also the lead-up weekend to NFT NYC, the SOLD OUT mega NFT event that will showcase over 500 Speakers talking about NFTs. These types of conventions can generate new Buzz or extend a buzz that has already been created.
Alts Worth Watching
Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.
Using Polygon, one can create optimistic rollup chains, ZK rollup chains, stand alone chains or any other kind of infra required by the developer.
Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications.
In this virtual world, users purchase plots of land that they can later navigate, build upon and monetize.
Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community.
Enjin Coin is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. Enjin’s flagship offering is the Enjin Network, a social gaming platform through which users can create websites and clans, chat, and host virtual item stores.
Enjin allows game developers to tokenize in-game items on the Ethereum blockchain. It uses Enjin Coin, an ERC-20 token, to back the digital assets issued using its platform, meaning that items can be bought, sold and traded with real-world value.
MATIC is currently trying to flip the $1.90 area into Support after hitting its $2.25 target level of resistance. We have two other levels that may pose a threat and they are $2.441 and the previous ATH at $2.70. If MATIC can break those levels then we will be seeing MATIC in Price Discovery mode.
MANA is currently working on a 56% candle as it smashed right through it’s previous resistance area near $1.05. $1.54 and $1.67 are the next two resistance areas before MANA makes a new ATH and enters Price Discovery.
We have seen explosive moves like this give back 60-80% of their gains in an effort to retest Support. We will watch this close but we do like the $1.05 area for a retest or a reload.
SAND is also putting in an impressive Daily Candle – pushing 21% at the moment. That is on the heels of a 32% Daily Candle yesterday. SAND is approaching its ATH at $1.20 where we expect at least some profit taking. SAND does have a trendline resistance to watch out for in the very beginning of Price Discovery. After that, we are looking near $1.37 for the next big area of resistance.
ENJ is also a good one to keep an eye on. Unlike the others, ENJ has a large move to go before approaching its current ATH. That being said, there is also a significant amount of resistance that it will need to get through first. If it decides to pull a MANA and obliterate all local resistance then we are looking at $3.42 and $4.00 as the next target areas for traders to be selling for profits.