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LooksRare catapulted to fame because the rival NFT market treading on OpenSea’s toes. Whereas critics have taken intention at it for the quantity 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.
Seems like a catch
You is perhaps tempted to disregard the LOOKS token for those who aren’t an NFT collector or into metaverse belongings, however an evaluation by Santiment famous that LOOKS may need extra to supply than. . .properly, simply seems to be and glamor.
👀 $LOOKS peaked in the present day at +175% because the March #FOMC assembly. Provide on exchanges is rising this previous week, lively deposits & withdrawals are each up considerably, and improvement exercise seems to correlate with worth. 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 enormous quantity coming on this week, which noticed worth pushing increased (wanting wholesome thus far). What we don’t wish to see is a a divergence of worth and quantity (increased worth with low quantity).”
Certainly, commerce volumes have been spiking since 26 March, simply as LOOKS rallied. Nevertheless, the change 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 developments, these aren’t triggering important adjustments in investor exercise. Weighted sentiment, which was barely unfavourable at press time, additionally appeared to agree with this.
Supply: Santiment
In the meantime, a take a look at the Relative Energy Index [RSI] tells us that LOOKS briefly crossed into the overbought territory, indicating that traders had been overvaluing the asset. Nevertheless, at press time, it was underneath the 70.00 line. That being mentioned, the indicator is on an upward pattern.
Supply: TradingView
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 day by day volumes. This is perhaps one issue that might dissuade traders from including LOOKS to their portfolio – even when it’s doing properly.
Supply: Dune Analytics
Airing soiled laundry?
LooksRare has been dismissed due to its large volumes of wash buying and selling that helped it eclipse OpenSea’s personal stats earlier this yr. Nevertheless, soiled laundry apart, Coinbase’s evaluation of the asset in February revealed,
“…the remaining legit NFT quantity remains to be greater than what NFT marketplaces Rarible, SuperRare, Basis, Makersplace, and Aysnc did in all of 2021 combined.”
For that purpose alone, traders could be well-advised to keep watch over LOOKS to see if it would proceed to rise – or fall onerous.
