The price is in a significant support zone around USD 20, coinciding with the 200-period SMA, an excellent point to start a rally. The 8-month EMA and 18-month SMA have remained crossed to the upside since July 2020 and might serve as dynamic supports.
The price of the WAVES token reached an all-time high of USD 63.88 thanks to a significant bullish rally. After that milestone, a strong correction caused losses of almost 70% in just two weeks.
WAVES is trading at around USD 21.36 and has accumulated a 5.2% loss over the last 24 hours. Its trading volume is above USD 730.04 million, and its market capitalization is about USD 2.14 billion. It occupies 58th place in the cryptocurrency ranking, according to CoinGecko.
The Reason behind the Crash of the WAVES Token
Sash Ivanov, the creator of WAVES, stated that the stablecoin Neutrino (USDN) runs within the Waves network. USDN was a victim of manipulation, which created a lot of panic in the market of the primary token of that blockchain.
In March, USDN unexpectedly decoupled from its anchor currency, the US dollar. Although it recovered almost entirely and traded at USD 0.98 after hitting a low of USD 0.76, the market is still negative for WAVES.
Ivanov stated that manipulation by cryptocurrency trading company Alameda Research caused the problem with the stablecoin. He pointed out that the firm created by Sam Bankman-Fried is seeking ways to manipulate the market and create panic.
The founder of Waves pointed out that someone requested a loan of one million WAVES from him through the Vires Finance protocol. However, he declined it as he suspected it was an operation to sell the tokens and pressure the price. In addition, he said that the user address requesting the loan could have some connection with Bankman-Fried.
In response to the accusations, Bankman-Fried stated those were conspiracy theories.
As a measure, Ivanov reduced the WAVES and USDN lending threshold to avoid further market manipulation.
WAVES, the so-called Russian Ethereum, has shown high use amid the conflict between Russia and Ukraine. The Russian population might be using it to circumvent possible sanctions and to face the economic crisis due to the war.
The Technical Analysis of the Price of the WAVES Token
The daily WAVES/USDT chart shows a significant short-term downward trend as a major correction is underway.
The price crosses the 8-day EMA and 18-day to the downside, and the latter might serve as dynamic supports.
The WAVES price is currently in a significant support zone around USD 20, coinciding with the 200-period SMA. The current point seems to be excellent to start a rally, but that would be irrelevant unless there are increasingly high lows.
The Monthly Analysis of the Price of WAVES
The monthly chart shows a clear long-term bullish trend in the value of WAVES. Therefore, the recent drop may be a correction after a significant rally leading the price to the USD 63.88 all-time high.
That suggests that the recent drop may be a correction after a significant rally leading the price to the USD 63.88 all-time high.
Although the drop has invalidated a big part of the rally, the price of the WAVES token has not yet given any worrying signs.
The price has crossed the 8-month EMA and 18-month SMA to the upside since July 2020, when the bullish run started. Those indicators might serve as dynamic supports during the current drop.
If the bullish bias remains intact in the long term, betting against the WAVES token for a long time seems a bad idea.
By Alexander Salazar
