SuperRare’s price experienced a strong reversal due to profit-taking following the token’s parabolic rise of over 500% between August 5 and August 15.
The SuperRare (RARE) token retreated to $0.2280, down 34% from its high on Sunday, August 18. This drop was primarily due to profit-taking as the recent surge lacked a substantial catalyst. Additionally, the token fell after on-chain data revealed that the SuperRare Treasury transferred 7.5 million tokens to Binance. Typically, moving tokens to an exchange indicates an intent to sell.
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Basically, SuperRare and other non-fungible token (nft) platforms like OpenSea and Rarible are struggling as trading volumes continue to decline.
Data from Dune analysis indicates that SuperRare’s monthly volume has plummeted to an all-time low. After reaching over $36 million in August 2021, volume fell to less than $1 million in July. This downward trend over the past two years led the company to reduce its workforce in 2023.
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Similarly, OpenSea's monthly volume abandonment to $32 million in July from $643 million in February 2023.
Additional data of CryptoSlam The report shows that global nft sales volume has declined by 37% over the past 30 days, to a total of $387 million. At its peak, the industry was handling billions of dollars a week, driven by popular collections such as Bored Ape Yacht Club, Azuki, Art Blocks and CryptoPunks.
SuperRare’s price surge also boosted its futures open interest to an all-time high of $112 million. Notably, the token had no open interest on the futures market for several days this month.
SuperRare Price Analysis
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The daily chart shows that the price of RARE has skyrocketed and trended on social media platforms such as x and StockTwits. It reached a high of $0.3460, the highest level since May 2022.
As it moved higher, the token broke through the key resistance point at $0.2384, which was its highest level in March this year. It also moved above the 50-day moving average, while the money flow index rose to the overbought level.
Considering these factors, the token’s outlook appears bearish as many traders may start exiting their positions. If this trend continues, the price could drop to the key support level at $0.1626, which was its highest level on May 12 and 30% below its low on August 19.
