Introduction

Index Coop originally spun up an index product in 2022 to reflect the NFT market known as the JPG NFT Index or JPEG Index. The project was then transferred to be part of a separate collection of indexes under the Moonrock brand. While their products are oriented at more liquid NFT exposure for investors, my curiosity was with using the index to get a sense of the blue-chip NFT market and the trends it is experiencing using technical analysis tools.

Moonrock discloses the contents of their index under the detailed composition for the product page for those who want to get into the weeds as to what makes up the index.

2022 in Review

What is interesting is from an ETH perspective, the index moved from roughly the same high to low as in #1 and #2, but if you look at the middle candle chart repricing the index in US dollars, we see a lower high and roughly the same lows. In dollar terms, since November 10th, we’ve been bound between $19 and $27, with the larger range for the year being between $19 and $51.

Where are we Headed?

I don’t think it will get much worse though we could see a final capitulation with crypto prices in the new year. Looking strictly at the JPEG charts, a blood diamond #3 is generally bearish, and a red X indicates a possible short #4. The price is below the .618 fib on the JPG/WETH chart #5, worsening the bearish sentiment.

Wrapping it up, the last signal on Market Cypher B is a sell signal #6 with negative money flow #7. Am I expecting new lows for NFTs? Probably not, but we should see some buying opportunities in early 2023, according to what I am seeing.

I also see plenty of resistance to breakthrough at 0.0208594054 - 0.02150050026 #8. With this in mind, I am not expecting NFT prices to go to the moon anytime soon, but you might be able to find one last sale.