Written by Marc Demar
In recent months, the Somnium Cube has been soaring. From a relatively stable $2-$2.5 range it jumped to all time highs around $25. Currently it sits above what appears to be a support level of $10.
The concept of “support level” is used in so-called technical analysis, a study of market charts and patterns. This is what investopia.com says:
Technical analysis tries to capture market psychology and sentiment by analyzing price trends and chart patterns for possible trading opportunities. Contrary to fundamental analysis, technical analysts do not necessarily care much about the companies behind the assets they trade or their profitability.
Furthermore it states:
Technical analysis provides a large basket of tools and concepts for trading. There are successful traders who don’t use it, and there are successful traders who do. Some believe technical analysis is the best way to trade, while others claim it is misguided and lacks a theoretical basis.
There are many technical analysis resources available. For instance, there is Data Dash, the popular YouTube channel by Nicholas Merten, who provides a ton of crypto market insights via technical analysis of charts and patterns.
Somnium Cubes
The increase in value of Somnium Cubes is undoubtedly related to the following:
- Increased awareness of and attention towards the Metaverse, ever since Mark Zuckerberg talked about it and changed Facebook into Meta.
- Somnium Space‘s announcements in recent months, including but not limited to the Winklevoss brothers investing in Somnium Space.
Suddenly there was mainstream focus on the Metaverse, which can be clearly seen in the Metaverse Index (MVI) /WETH chart on Trading View.
A technical analysis could never have predicted the sudden shift in sentiment towards the Metaverse in general and Somnium Space in particular. It doesn’t invalidate technical analysis, but it does mean that it cannot give you the whole story.
Fundamentals
This brings us to the fundamentals, the real story behind Somnium Space and where it is heading. Yes of course, the news that the Winklevoss brothers invest in Somnium Space is significant and an important milestone. But apart from money flows, apart from the sentiment of the day, what is it that Somnium Space is building? What is their vision? What is on the roadmap?
Focusing solely on the charts doesn’t make you much wiser as to what lies ahead in terms of developments and where the Metaverse Index or Cubes are heading. Not for now at least, where big strides are being made on a fundamental level; developments that will have a profound impact on how humans in the (not so far) future will interact. How we will socialize, play, work and do business.
We’re only at the early stages. The rise of the Internet (Web 2.0) is a good analogy here. A whole generation wonders how their parents and grandparents could ever survive without instant access to the world, friends and pizza. Let me ask you this: Do you believe there will be a paradigm shift and a future generation that will shake their heads in disbelieve when confronted with the fact that their parents/grandparents didn’t have the Metaverse at their fingertips to meet with friends or go shopping in virtual worlds? It is not about good or bad. It’s about whether you believe that’s where we will be heading.
Somnium Space
Somnium Space is forging the future of the Metaverse. There are tangible products on the roadmap, like the VR headset they are developing. There are developments that seek to accelerate adoption of Somnium Cubes and expanding the in-world economy. Yet other initiatives involve funding start-ups and projects to help people creating thriving businesses in a growing Metaverse.
More and more companies are partnering up with Somnium Space. Somnium Space also invests in more and more companies. With one goal in mind: To create an open, persistent VR world that will be the preferred destination for many. A world that will provide a fairer ‘playing field’ for a new creative revolution.
Many people have already found Somnium Space and are pioneering solutions on top of this new VR platform. At the same time, there is still a long way to go.
The Year Of …
For us, here at the Somnium Times, 2021 has not been the year of the Somnium Cube. Instead, it has been the year of Somnium Space. And our qualified guess? 2022 will be no different.
What today’s sentiment makes of the value of the Somnium Cube is irrelevant. In the long run it is relevant of course, but for now, let’s focus on building.
Let’s be innovators, pioneers, first movers.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, CUBE, MATIC, LINK, VET, LPT, NEAR, ATOM, ANC.
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