The NFTs quickly gained mainstream attention within a very short time during the recent NFT boom. And quickly the space extended from just a few coins to nearly 500 tokens at the press time.
Among them the popular token which ignited the NFT bull run are now down with a huge loss. Therefore showcasing the extreme volatility of the NFT space which may be due to extreme-sell off which is due to extreme bets on the space.
Decentraland(MANA)
The MANA price slid down from the major support levels at $3.16 after multiple attempts to restore these levels. It was not from the early trading hours, the asset initiated with a downtrend, yet the price fell into bearish trap from the past 4 to 5 days. Currently testing the lower crucial support levels, MANA price is required to bounce from here. Else the next support levels are very much distinct much lower than $1.4.
In the smaller time frame, the price is making a notable attempt for a rebound but the selling pressure may not allow it to do so. The asset could eventually break through these support levels and compel the price to decline below $2 very soon. And hence flip from the current levels is pretty much important or atleast a healthy consolidation around these levels.
The SandBox(SAND)
The SAND price is known to follow the MANA price to reach its peak. During the bull run, both held a healthy competition between each other in the race to hit $10 first. However, none of the assets reached these levels yet a gigantic plunge dragged the price which began much before the fresh sell-off.
The SAND price rejected a couple of support levels and is now heading towards the next strong levels. As the MANA price, SAND also requires to make a strong flip and achieve the support flipped to resistance levels at the earliest. Woefully the volume does not support the healthy uptrend and hence the downtrend may continue until it reaches the lower support.
Axie Infinity(AXS)
The AXS price also fell from the cliff of the mountain ever since it smashed its highs amid the NFT boom in November. The asset followed a consistent downtrend forming higher highs and lows, just like a waterfall. Shedding most of its value, the AXS price is testing one of the strongest support levels and attempting a bounce back.
The AXS price broke through the uptrend line since the beginning of 2022 and despite a notable bounce, yet the NFT is revisiting lower support. The support levels appear to be pretty strong and hence it may flip yet the volume does not support. Therefore, even if the asset flips, it may be a fake one which may be reversed within no time.
Source: https://coinpedia.org/non-fungible-token-nft/this-is-why-nfts-are-highly-volatile-popular-tokens-tremble-down-heavily-with-double-digit-loss/