Milady NFTs Get Dogecoin Treatment as Prices Retrace Days After Elon Musk Tweet

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 acknowledgement 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.

The Initial Surge- Elon Musk's Tweet Sparks Frenzy

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 handsome profit days afterwards.

The Milady NFT collection is a digital art collection featuring various depictions of the iconic "Milady" character. The artwork gained significant attention and popularity among cryptocurrency enthusiasts and collectors, leading to a surge in demand and prices.

Elon Musk, known for his influence on social media and the cryptocurrency market, tweeted a Milady avatar image along with a heartfelt message, creating a wave of excitement and speculation. The tweet quickly went viral, attracting the attention of his millions of followers.

A Roller Coaster Ride: Milady NFT Prices Soar and Then Retreat

As a result, the prices of Milady NFTs skyrocketed, reaching an all-time high of $13,700 worth of ether per NFT. The sudden surge in prices caused a frenzy among traders and investors who sought to capitalize on the hype.

However, the excitement was short-lived as prices started to retrace in the following days. Market data from OpenSea analytics revealed a significant drop in prices, with the Milady NFTs returning to their pre-tweet levels. At the lowest point, the NFTs traded at 3.2 ether per NFT.

This price retracement mirrors the pattern observed with dogecoin, another cryptocurrency favoured by Elon Musk. Whenever Musk mentions dogecoin on social media, its price experiences a temporary surge, often followed by a subsequent decline. This phenomenon has been attributed to traders and bots capitalizing on the initial hype generated by Musk's tweets.

While the Milady NFT collection experienced a temporary price retraction, it is worth noting that top holders of Lady's meme coins are still sitting on substantial unrealized profits. These early investors and collectors have seen the value of their holdings rise significantly, with some estimates suggesting they hold millions of dollars in unrealized gains.

The volatile nature of the cryptocurrency market and NFT space means that price fluctuations and retracements are not uncommon. The Milady NFT collection's initial surge and subsequent retracement serve as a reminder of the speculative nature of these digital assets.

As the market continues to evolve, it is essential for traders and collectors to approach investments in NFTs and cryptocurrencies with caution. While the potential for significant profits exists, inherent risks are also involved.

In conclusion

The Milady NFT collection experienced a surge in prices following an Elon Musk tweet, only to retrace its gains in the days that followed. This price retracement is reminiscent of the pattern.