NFT boom triggers parabolic rallies in Chiliz (CHZ) and Flow

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Strong hands see a correction in an uptrend as a buying opportunity, and data from CryptoQuant shows Bitcoin (BTC) whales bought near $ 48,000. This activity is evident in the large Coinbase outflows, most of which went into custody folders, and this suggests that institutional investors believe that the Bitcoin rally is room to run.

Even Kraken CEO Jesse Powell is extremely optimistic about Bitcoin. In a recent interview with Bloomberg TV, Powell said that if the digital asset overtook gold as a store of value, Bitcoin could hit $ 1 million in the next decade.

Day view of crypto market data. Source: Coin360

While Bitcoin price fluctuates between $ 47,000 and $ 51,000, non-fungible tokens (NFT) have prevailed and appear to compete with the DeFi sector in terms of transaction volume and token appreciation. NFTs from famous artists are retrieved in minutes, showing a keen appetite on the part of users. In addition to the work of art, sports-oriented collector’s NFTs are also quickly becoming increasingly popular.

Let’s analyze the basics of some NFT projects to see if the rally is close to the topping-out ceremony or if there is room for further expansion.

CHZ / USD

The blockchain sports company Chiliz (CHZ) has many years of experience in handling fan tokens from some of the most popular football clubs in Europe. At the end of 2020, the company announced a partnership with Binance in and since then Chiliz has listed ACM fan tokens for the popular soccer club AC Milan. The listing generated $ 6 million in revenue in a short period of time, and Chiliz recently announced that it has partnered with 23 sports and sports organizations to bring more fan tokens to market.

Chiliz has also announced plans to expand its operations in the United States. The company’s CEO Alexandre Dreyfus told Cointelegraph that an office is being set up in New York and the company plans to partner with local leagues and sports franchises.

If Chiliz can have some of the popular U.S. sports teams on board, it could give the company a big boost. Dreyfus said the company intends to double the $ 30 million it shared with its partners last year.

If Chiliz’s talks with Formula 1 and the esports teams turn out to be favorable, this can further boost growth.

CHZ has risen from an intraday low of $ 0.032468 on Feb.23 to an intraday high of $ 0.155004, up 377% in less than a week. This strong uptrend has pushed the relative strength index (RSI) above 89, indicating that the rally is overbought in the short term. This could lead to a correction or consolidation in the next few days.

CHZ / USDT daily chart. Source: TradingView

The first down move is the 38.2% Fibonacci retracement level at $ 0.108195. If price rebounds from this support, it suggests that bulls are buying the minor pullbacks rather than waiting for a deeper correction.

Then, if the bulls can push the price above $ 0.155004, the CHZ / USD pair could resume its uptrend and climb to $ 0.230731.

Conversely, if the bears cut the price below $ 0.108195, the pair could fall to the 50% retracement at $ 0.093736 and then to the 61.8% retracement at $ 0.079277. Such a deep fall will indicate that the momentum has weakened.

The pair could then be held in range for a few days before starting the next trend move.

FLOW / USD

Sports fans have traded cards from their favorite players since the 1920s, and extremely rare cards tend to sell for astronomical sums. In this digital age, however, physical cards can play second fiddle to sports NFTs. Take, for example, NBA Top Shot, a marketplace based on Dapper Labs’ Flow (FLOW) blockchain that has had sales of over $ 230 million in the past few months.

The NFT craze is showing no signs of slowing down, and an NFT drop by veteran digital artist Ben Mauro on VIV3, the first global marketplace for flow blockchain, grossed $ 2 million as the artwork sold out in just seven minutes.

Recently, OpenSea, the largest marketplace for NFTS, announced that it will integrate the Flow Blockchain into its platform to create a massive open economy for digital collectibles.

Flow also hosts digital collectibles from UFC and Dr. Seuss, and the upcoming launch of the mainnet could attract more developers, artists and investors to the platform.

FLOW has been in a strong upward trend since the end of January. The token took off, rising from an intraday low of $ 18.379 on Feb.26 to an intraday high of $ 41.275 today, a rally of 124% in one week.

FLOW / USD daily chart. Source: TradingView

The strong uptrend of the past few days has pushed the RSI deep into overbought territory, suggesting that the market is overheating in the short term. The long wick on March 3rd and today’s candlestick suggest traders are making gains on rallies.

Any pullback from current levels could find support near USD 30. If the price can recover from these levels, it indicates strength. The FLOW / USD pair could then rebound to the psychological resistance at USD 50.

This bullish view will be invalidated if the price drops below the 20-day EMA ($ 22.58). Such a move will suggest that the markets rejected the final leg of the rally.

BAT / USD

One of the main disadvantages of using technology is that it deprives users of their privacy. Almost every activity on the internet is tracked by technology companies who analyze user behavior and sell the data for a profit. However, with the advent of blockchain technology, users regain more control over their privacy and also have more choices about what personal data they want to share.

The Brave web browser is growing in popularity in 2020 as its daily active user base increased from $ 3.8 million to $ 8.6 million over the past year. At the same time, the number of verified content creators who receive rewards in the form of Basic Attention Token (BAT) for their work has increased by over a million. As the user base grows, the community gets more powerful because advertisers can no longer ignore it.

The search engine is an important part of any web browser. Brave’s acquisition of Tailcat, an open source search engine, will enable the project to reduce its reliance on the latest search engines, which depend primarily on the results of the big tech companies. Brave CEO and co-founder Brendan Eich told Cointelegraph that the company is expected to launch Brave Search in the summer of 2021. If successful, the new BAT search engine could open up a multitude of possibilities.

In his “Roadmap 2.0”, Brave outlined a plan to integrate a DEX aggregator and NFT support into his new Ethereum-native wallet. To cope with the high fees on the Ethereum network, Brave is exploring Layer 1 and 2 scaling solutions. The company’s recent moves increase the use case for BVT significantly.

BAT has been picking up steam in the past few days, rising from an intraday low of $ 0.3945 on Feb.23 to an intraday high of $ 0.8412 on March 3rd, a 113% rally in a short period of time. Currently, however, the token is about to be booked by traders.

BAT / USD daily chart. Source: TradingView

The BAT / USD pair has strong support at a Fibonacci retracement level of 38.2% ($ 0.6706) and below that at a retracement level of 50% ($ 0.6179). If the pair rises from either support, it suggests that traders are continuing to buy the dips. The rising moving averages and RSI above 62 suggest that the bulls have the upper hand.

Contrary to this assumption, the pair could fall to the 20-day EMA ($ 0.56) if the bears cut the price below $ 0.6179. A ricochet from this support could keep the pair locked in range for a few days. If the 20-day EMA support is cracked, a possible decline in the 50-day SMA ($ 0.43) is planned.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.