Taboo Token has retreated in the past three days as the bullish momentum faded. The TABOO/USDT price dropped to a low of 0.0090, which was about 62% below the highest level this year. It remains about 580% above the lowest point in 2022, giving it a market cap of over $10 million, according to data by CoinMarketCap.
What is Taboo Token?
Taboo describes itself as the playboy of the crypto industry. It is a company that uses blockchain technology to disrupt the adult entertainment sector. This is a major industry that is expected to gross over $300 billion. It is also a fast-growing industry that is ripe for disruption using blockchain technology.
Taboo aims to disrupt the industry using non-fungible tokens, virtual reality and selective content listing. All these parts then apply the endowment effect and psychological inertia that is created between buyers and sellers. In simple words, they have created an NFT marketplace where people can bid on adult pictures.
A quick look at its website shows that some of its top-grossing NFT collections have sold out. Taboo has also created a collection known as Taboopunks that has 10,000 uniquely generated characters. It is unclear how these NFTs are doing.
Taboo Token price rose this year in sync with other digital currencies like Ethereum and Bitcoin. This rally was helped by the relatively low inflation rate and the rising hopes of a Fed pivot. Analysts believe that the Fed will start cutting interest rates later in 2023.
Taboo price also rose after the developers launched the first mansion party. They are now working to launch the second one, which will likely see more users as the Taboo Token gets more popular.
Taboo Token price forecast
The daily chart shows that Taboo crypto price surged in the first few days of the year. As it rose, the token reached a high of $0.0023. It has now pulled back as some investors start taking profits. Taboo remains above all moving averages and the MACD has continued rising. It has remained above the Ichimoku cloud indicator.
Therefore, I believe that these losses are temporary and that the token will resume the bullish trend in the coming days. If this happens, the next key resistance level to watch will be at $0.0015, which is about 70% above the current level. A drop below the support at $0.0080 will invalidate the bullish view.