Descending wedge into 20% gains?First published chart. Looks like we are about to break out of a descending wedge into new highs for $YGG.
YGGUSDT trade ideas
YGG is the BEST short I've EVER seenLots of people absolutely love Yield Guild Games, and they have a right to. The NFT space is really exciting, and there's lots of profits to be made by buying speculative assets. Their token is amazing, and it provides value to stakers through play to earn. I'm not here to dismiss any of that, but I am here to tell you that this token is the BEST short I've EVER seen, from not only a technical but also a fundamental perspective.
Fundamentals
YGG makes around 1 million SLP a day worth about $175,000. However this doesn't seem to at all justify their token's valuation, since in order to earn the tokens current Fully Diluted Valuation of $6,383,521,000, they would need to continue farming SLP in the same market conditions for an entire 100 YEARS, which is an extremely long time in this brand new and highly speculative space. The reason the price is so high, from a fundamental perspective, is simply due to the nature of the token lockup. Currently only 87,906,250 out of 1,000,000,000 of the tokens are in circulation, which means that more and more supply will hit the orderbooks as time goes on.
Technicals
The fundamentals perfectly match with our bearish technical because they tell us that this entire move up is the IPO (Initial Pump Offering). This is a commong model for tokens because it allows for the bigger players, who notably purchased this token for $0.50 each token, and are now at around a 12X in profits, to pump up the prices and then sell at the highs before the new tokens get minted. So, what they do is move the prices up by buying and create a fake fool's rally which is easy to do because these large players have billions and billions of dollars that they earn from these sorts of campaigns. In the end, the goal is to sell at the highs and mark prices down to lock in their profits while the retail traders get confused why price is not decreasing.
We are not retail traders. We think like the big players, and we can earn like the big players. We will short YGG on the OKEX exchange with appropriate leverage and keep an eye on the funding rate because if it goes too deeply negative then it may no longer be worth keeping the short open.
