# Weekly Report #45 Market Analysis + Index Signals *What's the reason behind the rebound in volume? Could it be that the market is recovering, or is there any other reasons?* By [Echoo Research](https://paragraph.com/@echoo_research) ยท 2022-11-08 nft report --- ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Fbe607e4c8f5686dab3a8b8c20dd36f77.png&w=640&q=75) CONTENTS ======== **1.Weekly Market Analysis** Market Volume/Traders/Blue Chip Index/Whale Capital **2.Index Signals** * NFTs Bottom-fished by Whales Last Week * Trading Signals for Blue Chip NFTs * SMA Trends for Blue Chip Collections 1\. Market Analysis =================== ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Ff0b9e3cfd16950c92123f87b5ec58442.png&w=640&q=75) Weekly NFT Market Volume (Source: [echoo.substack.com](http://echoo.substack.com)) This week's volume saw a significant **30%** increase WoW. Even though the number has temporarily returned to the market level of September, it **does not represent the overall trend of the market**, as this statistical uptick is mostly attributable to the **trading hype of individual projects** (for example, Art Gobblers' weekly trading volume hit 4468 ETH). On the other hand, most classic NFT projects remain low on trading volume. We will keep a close watch on market data to find out about the possibility of a rebound. _It is worth noting that, having gone through two previous cycles, the NFT market is now in the "_**_mild contraction_**_" phase. This phase is characterized by extremely_ **_weak_** _trends and a_ **_prolonged period of minimal trading volume_**_. This indicates that most people have a very_ **_high degree of recognition_** _of the market's future trends._ ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Fb3788b3543780c456ba46916a7a587d7.png&w=640&q=75) Weekly Trend of NFT Traders (Source: [echoo.substack.com](http://echoo.substack.com)) The number of traders fell 7% this week compared to last week, **breaking the lowest figure seen in May** and setting another record low of the year. Participation in the NFT market remains low. As seen from trading activities, sellers continue to outnumber buyers. People are more inclined to **sell** their NFTs now. ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Fe0ab23ddda0a9bc14be61bf3d5b65bdc.png&w=640&q=75) Market Cap Trend of Blue Chip NFTs (Source: [echoo.substack.com](http://echoo.substack.com)) As for whales, **the size of capital outflow has reduced** this week despite whales' participation remains on the low. While major whales prefer to **staying out of the market**, some **smaller whales** still trade in the market. These whales participate in the NFT market with a **small capital size**, and they trade fast with the "**fast in, fast out**" strategy. 2\. Index Signals ================= Note: Trading risks are high due to the recent sluggish market performance. The data and analyses provided by Echoo Research are for reference only. 2.1 NFTs Bottom-fished by Whales Last Week ------------------------------------------ This week, Art Gobblers, Art Blocks, and CryptoPunks top the list of most-bought NFT collections by whales. Some whales with a smaller capital size also bought into projects like Mint Pass Mexico City MPMX, SPLOOT by De la Dondi, and LOSTPOETS: POETS. The figure below shows the top 15 NFTs bought by whales and the amount and average costs.(Some values may be affected by extreme values and are for informational purposes only.) ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2F8769c194573a94283c251b8f54497a37.png&w=640&q=75) NFTs Bought by Whales 2.2 Trading Signals for Blue Chip NFTs -------------------------------------- With the recent contraction in trading volume and reduced price volatility, short-selling signals are triggered less. This also reminds us that we should minimize our operations and wait patiently for the right timing. See below for details: (Note: This signal is used for short-swing trading and is only suitable for actions within the volatility range. When unilateral trend arises, inaccuracy might occur.) ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2F556660c327101d4c0ec743ea2ce4a42c.png&w=640&q=75) Buy-sell Signals 2.3 SMA Trends for Blue Chip Collections ---------------------------------------- Ever since the beginning of of October, short-term trends have been suppressed by long-term trends, resulting in **a lack of rebound momentum** in the NFT market. Recent trend: This week, the SMA (5) trend line remains below SMA (10), which means the near-term market will stay weak. Long-term trend: The entanglement of short-, medium-, and long-term trend lines are getting tighter and are **suggesting the emergence of a new direction soon**. We will keep a close watch on these trends. (Note: This indicator is obtained through market simulation of blue chip market caps and is used to predict market trends.) ![](https://paragraph.xyz/_next/image?url=https%3A%2F%2Fstorage.googleapis.com%2Fpapyrus_images%2Ff1a2f9abf945cbafd4a5078d44d20648.png&w=640&q=75) Market Trend of Blue Chip NFTs (SMA) * * * > **_DYOR._** _Please consult with a financial advisor before making any investment decisions. Echoo Research does not provide any financial advice and the above contents are only for informational purposes._ * * * --- *Originally published on [Echoo Research](https://paragraph.com/@echoo_research/httpsechoosubstackcompweekly-report-45-market-analysis)*