Rarible token price has gone parabolic but gains may be limited

Rarible (RARI) price made a strong comeback on Monday, becoming one of the top-performing cryptocurrencies in the market. The token surged to $4.50, more than doubling in the previous 24 hours. This surge brought its total market cap to over $80 million.

The Non-Fungible Token (NFT) industry is going through a rough patch even as cryptocurrencies continued soaring. Data by CryptoSlam, shows that the volume of NFT sales in the past 30 days jumped by 15% to $1.4 billion.

However, the number of NFT buyers dropped by 0.5% while the number of transactions fell by over 33.70%. The most popular NFTs in this period were Pandora, NodeMonkes, CryptoPunks, and Bored Ape Yacht Club.

Rarible, one of the most popular NFT exchanges in the world, is going through a difficult period. Data by DappRadar shows that the volume in the past 30 days jumped by 17% to $261k. Total sales in the same period dropped to 385. Buyers and sellers in the ecosystem stood at 258 and 177, respectively.

Meanwhile, the trading volume in its marketplace had a volume of $1.62 million, a 9.17% increase from the previou month. There were over 3.77k traders in the ecosystem.

Therefore, the price of RARI is soaring because of the ongoing pumping among traders. A closer look shows that the token was one of the most trending tokens in the market. It was trending in key social media platforms like StockTwits and Reddit. 

Another evidence of this is that the volume of the token has jumped sharply. It stood at over $33 million in the past 24 hours. That was a big increase from the previous day’s $1.6 million.

RARI chart by TradingView

The daily chart shows that the RARI token price went parabolic on Monday, continuing an uptrend that was going on recently. As the coin jumped, it crossed the crucial resistance point at $2.40, its highest point in January this year.

Rarible’s token remains above all moving averages while the MACD indicator remained above the neutral point. The Relative Strength Index (RSI) has also pointed upwards.

Therefore, I suspect that the token will soon retreat as profit-taking sets in. If this happens, the next point to watch will be at $2.50. A move above this week’s high of $4.51 will point to more upside.

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