Waves Succumb to Single-Digit Levels; Will There Be a Buying Action?
Waves blockchain was initially focused on developing generic technologies just like Ethereum. It was initially developed as a platform for tokenization or token issuance during the ICO brochure of 2017. With smart contracts becoming a big deal and the idea of rooting out mediators, Waves created their version of smart contracts without copying other blockchains.
It was the first non-Turing complete smart contract language without gas fees, and it was a huge idea as Ethereum gas fees were getting quite absurdly higher. Waves ecosystem covers a wide range of sectors, including trading platforms, marketplaces, liquidity relays, data providers, games, and others.
Waves stand out from the blockchain crowd with its voting processes to implement changes in its monetary policies. It was undertaken to control the supply of money by a community via decentralized voting. That community voting mechanism was built to create a whole new range of financial instruments on Waves.
It used Neutrino, a price-asset stabilization protocol, and a DeFi toolkit that enabled the creation of USDN stable coins that paid users with decent interest on collateralization. Waves are the second biggest fundraising platform with a market capitalization of $1,024,721,573 and a circulating supply of 108,422,392.00 WAVES. Currently ranked 51st, this crypto has spiked significantly in the last week.
There seem to be huge possibilities with the applications and roadmap of Waves blockchain. Its recent price hike in March and April 2022 created a shock and awe. Despite the stablecoin de-pegging and profit booking sentiment behind the sudden collapse of its price, the fundamentals of this blockchain are quite strong. Find more details about the WAVES coin’s future in detail here.
The stablecoin de-pegging crisis seems to have a major role in pushing the price from single digits to the all-time high value of $62.36. The bounce back from single-digit numbers to double-digit numbers within a few weeks is not short of a miracle for Waves enthusiasts.
As Waves founder indicates a potential re-tweaking of undercollateralized USDN stablecoins, Waves can find increased buying traffic to take advantage of the positive sentiment created by this implementation. On an immediate basis, there is a strong resistance near $28 levels, confirmed by the resistance witnessed during the peak buying cycle of September 2021.
Waves found support at $3.5 and moved up to $11.5. This price hike can sustain in the long term and aid in the overall growth of its ecosystem. RSI has positively reflected the price rise. On the other hand, the volumes have been hitting fresh highs, bringing in a buying sentiment in the coming days.
Story after the retracement to near double-digits is a short consolidation ongoing for the last three days. It seems the outcome of this consolidation will be instrumental in the direction of the price trend. $7.9 has become its lower limit, while $10.5 has become the higher limit.
On hourly charts, it can be seen that prolonged trading near $4 levels incited buyers on May 30, as a result of which Waves is showing signs of reclaiming its previous levels.