The digital collectibles market is showing signs of reactivation this week. The main indicator is the notable Magic Eden $ME token rally. The marketplace’s native digital asset climbed more than 36% in the last 24 hours. This move coincides with renewed confidence in the NFT sector, which had been dormant for months.
The price of $ME experienced strong positive volatility. The token moved from an intraday low of $0.4422 to a high of $0.6019. At the time of writing, the price is stabilizing near $0.5857. According to data from the CoinGecko platform, this performance positions Magic Eden as the second-largest NFT marketplace. Its current market capitalization exceeds $97 million. This figure is only surpassed by Blur, which holds around $135 million. The optimism appears to be spreading. Competitor projects like MoonBase and Sudoswap also posted impressive weekly gains. Their rises were 41.4% and 25.1%, respectively. This suggests a renewed investor appetite for marketplace tokens.
This movement is significant after months of low activity. The total NFT market capitalization grew by $500 million over the last week. This sharp increase brought the total figure above $5 billion. It is the first time the sector has reached this level since August. The rally follows weeks of consolidation. It also comes after a significant liquidation flush earlier in October. The Magic Eden team itself seeks to drive this bullish narrative. “We’re not waiting for ‘NFT szn.’ We’re building it,” they stated on their official X account. To back up their words, the platform launched over 35,000 NFT packs. This initiative generated more than $5 million in total volume, injecting liquidity.
Could the $ME token reach one dollar?
Technical analysis suggests the Magic Eden $ME token rally faces a crucial test. The asset is testing the key resistance zone near $0.60. Traders are watching closely to see if the buying momentum can be sustained. The ME/USDT daily chart shows a potential bullish reversal after a prolonged downtrend. The token was confined within a descending channel. The current move above $0.52 reflects a significant daily gain. This hints that momentum may be shifting in favor of buyers. If $ME manages to break and close above the channel’s upper trendline, it would confirm a major bullish breakout.
A successful break would mark the start of a new bullish phase. The projected target based on this technical breakout is around $0.95. This would represent a potential upside of nearly 178% from current levels. However, risk persists for these companies in the crypto sector. If the price fails to hold above the $0.50 support, a retest could occur. The price might seek the lower levels of the channel before any significant rally. Analysts believe this recovery could cause a shift in overall sentiment. NFT traders appear to be re-entering the market. They are doing so ahead of potential ecosystem updates and marketplace expansions.
