- Shopify entered the NFT market earlier this month.
- Share prices shot up after Deutsche Bank boosted its rating.
- Shopify’s competitive advantage to benefit in the long term.
Shopify Inc. (NYSE: SHOP) shot higher in response to the comment made by Deutsche Bank boosting its rating and price target on the e-commerce software company. The analysts predicted the businesses to accelerate in 2023, which may allow the company to outpace growth in the overall US e-com market. Investors anticipate getting a glimpse of 2023 migration trends when Shopify discloses fourth-quarter reports. The disclosures are scheduled to be released around Feb15.
Shopify announced plans to reduce its global staff by 10% as a method of cost reduction to deal with inflationary trends. The e-com venture strengthened its portfolio last year by including innovative services like Twitter Shopping, Local Inventory on Google, Shopify Functions and Tap to Pay on iPhone.
Recently, Shopify increased the integration of NFTs, enabling millions of businesses to start creating, producing, or transferring Avalanche NFTs.
Merchants’ NFTs are automatically converted into products that may be seen and bought on the storefronts.
Revenue in the NFTs market is expected to reach $3.5 billion by the end of 2023 with a CAGR of 22.82%. Shopify has a huge competitive advantage over other NFT marketplaces, as most NFT marketplaces don’t enable customers to trade using fiat money.
Furthermore, Shopify can explore the untapped market of vaults in the metaverse. With several big conglomerates like Gucci, Coca-Cola and Wendy’s, opening virtual stores on various metaverse platforms, Shopify can be the pioneer in opening a storefront in the e-commerce category. The virtual storefront can shed light on the NFT sales and traditional services Shopify has to offer.
SHOP Stock Price Analysis
The SHOP stock prices have moved, forming a parallel channel with recent price action occurring near the upper band. The Volume showed both sellers and buyers actively taking part in the market. The 20-EMA lays beneath present prices.
The MACD lines witness a bullish divergence and form ascending buyer bars in the region above the zero-histogram mark. The RSI reaches near 60-70 range to reflect buyer influence. If the current prices successfully breached the resistances near $56.90 and $72.60, a high run reaching $100 can be established.
Conclusion
The e-com giant, Shopify Inc., can expand manifolds in the coming year. The predicted projects for the company may lure in more buyers in hopes to enjoy price rockets. The holders must watch out for the resistance near $56.90 to mark a bullish momentum.
Technical levels
Support levels: $24.00 and $12.15
Resistance levels: $56.90 and $72.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
