Chart of The Day: NFTs Restart Rally on Yuga Labs Acquisition

- As previously highlighted in our weekly NFT Insights, the general volume and floor prices of NFTs have been on a downtrend for the past few weeks. However, events over the weekend have sparked a renewed interest in the NFT market, most notably Yuga Labs’ big acquisition announcement.
- Yuga Labs, the company behind Bored Ape Yacht Club (BAYC), announced they acquired the IP of the CryptoPunks and Meebits NFT collections. Their first line of business was to give full commercial rights to all their respective NFT holders. Prior to this, Larva Labs had full control over the intellectual property of CryptoPunks and Meebits and had restrictions on what the NFT holders could do. This acquisition could unlock the full potential of branding and commercialization of these NFTs that were previously limited.
- Additionally, Yuga Labs will also be acquiring over 400 CryptoPunks and 1,700 Meebits from Larva Labs as part of the deal. The initial announcement sent prices of CryptoPunks and Meebits soaring by +30% and +55%, respectively, within the first two hours. The frenzy has since cooled and settled today at +13.9% and +23.2%, respectively.
- In other news, Shopify recently partnered with Doodles and had a pop-up event at SXSW 2022 over the weekend. Doodles have since gained +35% since Shopify posted a Doddles NFT last Wednesday.
- BAYC didn’t miss the party given their planned merch drop in 2 weeks, plus the speculation of an $APE token going around. Note: these are unverified with no official sources by BAYC, and should be taken lightly.
- It was quite an eventful weekend with NFTs regaining some lost traction, helping push general floor prices for many collections higher the last few days.
[Excerpt from our Mar. 10 Market Insights]

In last week’s Market Insights, we highlighted two names that were showing decent relative strength in the face of dire market conditions: LUNA and AVAX. As always, we note that, due to the violent nature of this market, don’t be tempted to chase; oftentimes it pays to be patient in markets like this (even when inaction is the hardest thing to do).
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LUNA has been on an absolute rampage over the last two weeks, printing a fresh all-time high as markets continue their moves lower. At the time of this writing, LUNA is once again flirting with a triple-digit price tag after doubling from $50 to $100 in less than three weeks.
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From last week: “Should the market pull back from here, look for LUNA to put in a higher lower around the $65-$75 area, denoted below.”
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This bid zone has done its job and proved to be fruitful. It acted as support around the $75 area and has since yielded a ~30% return.
- For more, Delphi members can see our latest Market Insights here.
[Excerpt from our February Chartbook]
Market Technicals – Key Shorter Timeframes Levels

- Support at $34K: This is a key support level we’ve been tracking the last couple of months. Our justification for this level is during the January hawkish Fed news cycle, we saw markets nuke into $34K support before staging a considerable rally. As Russia invaded Ukraine, the market fell once again, with BTC bouncing off its $34K support level before an even more impressive rally.
- As price has retraced the entirety of last week’s move, $34K isn’t off the table this week. Should we lose this level, look out for another quick leg lower.
- Support at $28.5-$30.5K: If the $34K level fails to hold, look to the aforementioned weekly market structure support, roughly around $28.5K-$30.5K. We foresee strong buying support if BTC were to dip below $30K, but such a move would increase the likelihood of one more violent selloff before a true bottom forms.
- Resistance at 2022 VWAP: Should price shake off the poor start to the week, and reverse course to the upside, the confluence of the 2022 VWAP level and the $40K psychological level will likely act as the first layer of resistance.
- Resistance from Trendline: A simple trendline connecting the local highs from December 2021 and February 2022 was tested and acted as resistance during BTC’s rally last week. Should price reaccept above $40K, look for this level around $42.5-$43K to be tested; there’s the confluence here with the December ’21 Crash VWAP as well.

- The Fear & Greed index at one point looked to be staging a recovery, but global events and market woes have quickly sent the indicator back to lows experienced for much of the last several months.
- As mentioned last month, contrarian sentiment analysis is often a good place to begin looking for trades much like the latest short-term rally in prices off of the $34K lows, “but we caution the worsening macro and global backdrop is still a key consideration for market performance at this point in time.”
- For more, Delphi members can read the full chartbook here.
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