How’s it going, everyone? Matt here today.
I want to share a secret relationship I discovered in the crypto space recently…
Quick disclaimer: You don’t have to be a fan of digitized doodle art to profit from it. That’s the beauty of trading. You just follow the money.
As I was poking around some charts, I noticed an opportunity for moon jumps in the NFT space. That’s how I made 445% and 787% gains on my Pudgy Penguin trades.
Penguin 3532:
- Buy: 4 ETH x $3,162.43 = $12,649.72
- Sell: 21 WETH x $3286.50 = $69,016.50
- Gain: $56,366.78 — 445%
Penguin 7193:
- Buy: 0.45 ETH x 3,162.43 = $1423.10
- Sell: 3.8 ETH x 3,324.26 = $12,632.19
- Gain: $11,209 — 787%
Read on to understand what could cause the next moon jump…
When I Dip, You Dip, We Dip
Some types of stocks move together. They follow a trend. Penny stocks, for example, tend to go up when the overall market does too.
But when it comes to cryptos and NFTs, let’s just say they don’t like to share the spotlight.
Crypto assets and NFTs have an inverse relationship. That means when one goes up, the other one usually goes down, and vice versa.
The reason is simple. NFTs require crypto “gas money” to mint, buy, sell, cancel an order, or do just about anything.
When the value of crypto goes up, so do the gas money fees, and this makes people shy away from NFTs.
So what brings degenerate traders back to the art market?
What NFTs we scooping up on the dipski?
— Matthew Monaco 🚀 (@mono_trader) January 22, 2022
Trading the Trend
The January Effect didn’t have much of an impact on stocks in 2022. But something interesting happened in the crypto and NFT spaces.
As bitcoin dropped to the mid-to-low-$30K range and ethereum dropped to the mid-$2K range, NFT sales hit a $7 billion all-time high.
So where’s crypto at now? Bitcoin’s bounced back to around the $40K level and ethereum’s bobbing around $3K again.
Meanwhile, volume in the NFT space has dropped off a bit. So is this a dip buy opportunity for NFTs?
Conclusion
The next big opportunity is always around the corner. When you understand how different parts of the market work together or don’t, you can get a better idea of what can happen next.
Right now, you want to pay attention to projects you like and see if there’s any panic selling. That could create a buying opportunity for you. It’s probably best to avoid brand new projects at this time though.
It’s the best place for up-to-date insights on crypto momentum strategies. These babies move fast!
Plus all the cool kids are moon jumping, so…