Bitcoin
BTC$16 815.91

2.46%

Ethereum
ETH$1 262.81

4.49%

Tether
USDT$0.999941

0.02%

Binance Coin
BNB$298.40

-0.55%

USD Coin
USDC$0.999977

-0.02%

Binance USD
BUSD$1.000510

0.01%

Nearly $13.75M liquidated as WAVES rallies 70% in a day - what's next?


30 Mar 2022

#Waves

Stablecoin management DeFi platform Neutrino emerges as the key factor behind WAVES' ongoing price rally. WAVES price surged by up to 70% on March 29, reaching a new all-time high around $54. Traders betting against the rise of Waves — the native token of the WAVES blockchain network — suffered losses worth millions of dollars as the WAVES/USD pair extended its recovery to a record level in the past 24 hours.

The price rebound, which started on Feb. 22 when WAVES price was at $8.25 caused around $13.75 million worth of liquidations due to crypto-based futures on a 24-hour adjusted timeframe, data from Coinglass shows.

Around $11 million of the total liquidated positions were short.

2.0 hype, Neutrino behind WAVES rally

As Cointelegraph earlier covered, traders may have jumped into the WAVES market after assessing its three consecutive optimistic updates: the migration to Waves 2.0, the launch of a $150 million fund and the partnership with Allbridge. Edson Ayllon, product manager at dHEDGE — a decentralized asset management platform, told Cointelegraph that the euphoria surrounding the release of Waves 2.0 in October was reflective in the rising total value locked (TVL) in the Waves ecosystem that reached an all-time high of $4.36 billion on March 29.

"Waves 2.0 adds EVM support to the execution layer, and adds proof-of-stake with sharding to the consensus layer," the analyst noted, adding: "Sharding and proof-of-stake have been concepts Ethereum has been working towards for years on their roadmap."

Interestingly, Neutrino, an algorithmic price-stable "assetization" protocol built atop the Waves blockchain, appeared largely behind the increasing Waves TVL. Notably, the protocol witnessed an inflow of 8.91 million WAVES in one day — worth nearly $450 million — to its smart contract, data from Defi Llama shows.

Neutrino allows the creation of decentralized stablecoins that maintain their U.S. dollar-peg by collateralizing WAVES tokens. The protocol has launched just one stablecoin project so far, called Neutrino USD (USDN). The supply of USDN increased from around 800 million to 832 million on a 24-hour adjusted timeframe, coinciding with the rise in the WAVES inflow into the Neutrino smart contract. That presented Neutrino as one of the active WAVES buyers in the past 24 hours.

What's next?

WAVES appears to have been breaking out of a bullish continuation pattern called a "bull flag." In detail, the chart pattern looks like a downward sloping channel that appears after a strong price move upward (called "flagpole"). In a perfect scenario, it resolves by breaking out toward the level at a length potentially equal to the flagpole's size.

Applying the classic interpretation of the bull flag pattern to WAVES' ongoing price action suggests a continued price rally toward $100, as shown in the chart below.

However, WAVES' weekly relative strength index (RSI) has turned overbought — a sell signal. That could have the WAVES/USD pair retrace towards $34 as its interim support level. That would also mean that traders are returning to bull flag's top for another upside confirmation. As a result, a continued selloff below $17 would risk invalidating the entire flag setup. 


Related

Waves risks
Waves risks "death cross" plunge after price rallies 88% in six days
Crypto bounce sees Waves, Internet Computer gain 80%–110% on rebound
Crypto bounce sees Waves, Internet Computer gain 80%–110% on rebound
WAVES price swells to new all-time highs, nearing $4B market cap
WAVES price swells to new all-time highs, nearing $4B market cap

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 61.2% 80 $16 815.91 2.46% 2.22% $323 213 771 261 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 64.8% 79 $1 262.81 4.49% 8.80% $154 535 308 538 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $0.999941 0.02% 0.09% $65 358 819 507 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 66.4% 67 $298.40 -0.55% 0.49% $47 735 233 591 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $0.999977 -0.02% -0.02% $43 305 374 728 USDC 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 91.6% 1 $1.000510 0.01% 0.08% $22 176 670 935 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 68.8% 66 $0.402021 2.91% 7.66% $20 217 649 686 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 58.4% 85 $0.104544 2.73% 30.58% $13 869 988 356 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 59.6% 81 $0.313452 1.39% 0.62% $10 795 931 462 ADA 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 95.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 63.6% 72 $0.866314 4.01% 2.62% $7 566 657 745 MATIC 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 69.6% 67 $5.37 2.22% 0.69% $6 126 105 270 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 90.8% 1 $0.999600 0% 0.02% $5 652 893 809 DAI 7 days price change
14 Litecoin (LTC) LTC Litecoin predictions 62% 74 $77.93 2.83% -0.18% $5 589 341 445 LTC 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 68.8% 66 $0.053825 0.77% 5.80% $5 472 681 192 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.