Artrade price has crashed hard in the past few weeks as investors take profits and as the momentum in the crypto industry fades. The ATR token plunged to a low of $0.013, a 71% drop from its all-time high recorded just two months ago. This drop has brought its market cap to about $20 million.
What is Artrade and why is it falling?
Artrade is a platform that lets users create and sell art using the Solana blockchain. It describes itself as the first art-focused Real World Asset (RWA) tokenization platform on Solana.
In it, artists can create their own art pieces and sell them to other buyers. Most recently, it made headlines when it listed a Picasso.
The Artrade token price has experienced a significant decline, which is a result of profit-taking following its impressive surge to $0.047 shortly after its launch. This surge, a testament to the potential of the cryptocurrency market, is a common occurrence with newly listed tokens, often followed by a correction as initial buyers take profits.
Second, Artrade price has plunged because of the ongoing weak sentiment in the crypto industry after the hawkish Federal Reserve. Bitcoin has fallen to $66k, while Ethereum has slumped to $3,500. Most altcoins drop sharply when Bitcoin is not doing well.
In its statement this week, the Federal Reserve decided to leave interest rates unchanged between 5.25% and 5.50%. The officials also hinted at just one rate cut this year, but the bank pointed to as many as four cuts this year in its December meeting. This statement came shortly after the US published encouraging inflation data.
Artrade’s price is also being affected by investor skepticism about the demand for blockchain-based art. This skepticism has been amplified by the recent collapse of the Non-Fungible Tokens (NFT) industry, raising questions about the sustainability of this market.
Artrade price forecast
The ATR token price has persistently shown a strong bearish trend on the four-hour chart over the past few weeks. It has formed a descending channel and is now approaching its lower side, indicating a challenging market environment.
Artrade has also slumped below the 25-period and 50-period Exponential Moving Averages (EMA). The Relative Strength Index (RSI) has reached below key point 50. Therefore, its outlook is bearish as sellers target the lower side of the channel at around $0.01.
In the near future, however, the Artrade token will likely rebound as other cryptocurrencies bounce back.
