coindesk.com
Prices of the popular Milady $NFT collection have retracted gains from the past weeks as holders likely took profits on a move influenced by an Elon Musk tweet.
Earlier in May, the Milady collection spiked after receiving acknowledgment from Twitter owner Musk who tweeted a picture of a Milady avatar with the words “There is no meme, I love you” overlaid on the picture. Each $NFT traded for 3.4 ether at the time.
That immediately prices surged as much as 200%, each Milady fetching $13,700 worth of ether (ETH) at the peak. Elsewhere, an unrelated LADYS token spiked thousands of percent, reaching a market capitalization of over $120 million.
All gains have since reversed, as the $NFT collection is now back at prices before Musk’s tweet, data from OpenSea analytics shows, dropping to as low as 3.2 ether per $NFT on Thursday.
This is similar to the price action seen in dogecoin (DOGE) – which enjoys Musk’s support – which typically spikes whenever it is mentioned by the entrepreneur. These jumps are short-lived, however, as traders and automated bots pile on the tokens mentioned by Musk following his Twitter comments only to sell for a handsome profit days afterward.
This is typically seen in price charts as a short-term spike and a gradual sell-off.