While altcoins in the top 10 are rallying, following ETH’s new ATH and Dogecoin’s rally to 50 cents, NFT marketplace tokens are consolidating. THETA, BAKE, FLOW and CHZ are currently consolidating. In the current alt season, these altcoins have consolidated several times, hitting previous levels every few weeks. So is this ideal for retail traders to accumulate in the ongoing dip?
It is anticipated that these tokens will rally, however, that depends on metrics like trade volume, unique addresses (representing demand across exchanges), the selling pressure on NFT marketplace tokens, and inflow of investment. At the current price level, THETA is overvalued and ranked in the top 20 overvalued tokens.
With the launch of THETA 3.0 shifted to June 2021, the altcoin is expected to rally. It has been easy to spot bullish accumulation following a price rally. Among altcoins that have recently pulled back in the dip right before the altcoin rally, BAKE, FLOW and CHZ stand out.
THETA Volatility vs Price || Source: Lunarcrush
While the altcoin rally is led by Ethereum and BNB, there is a place for BAKE, FLOW and CHZ’s rally. BAKE’s trade volume has dropped considerably, the price is still at the $6.13 level, it is resisting further selling pressure. Following a few rounds of consolidation, CHZ continues to see high demand in top markets. It was trading at the $0.497 level.
NFT’s growth is similar to DeFi in its early stages, this has attracted more traders to NFT marketplace tokens.
Based on the growing market capitalization and dominance, NFT marketplace tokens that have rallied in the past week, include Bakery swap and Sand.
Source: Lunarcrush
Based on the above chart from Lunarcrush, the volatility has dropped, however, the price is largely proportional to the volatility. This is similar to most NFT marketplace tokens rallying this week, a drop of over 75% in volatility usually signals a bearish sentiment.
However, in the case of BAKE, this is not applicable. The price dropped with every dip in volatility. This changed post May 2021; before that, a drop in volatility signaled a drop in price for BAKE.
Sushiswap and Uniswap, Bakery Swap emerged as tokens that offer high short-term ROI.
These NFT marketplace tokens consolidating right now are likely to rally further in the following weeks.