WAVES Price Goes Into Free Fall After USDN Debug


Waves price has broken above important horizontal and diagonal levels, possibly due to USDN dip.

It is possible that WAVES price has dropped as a result of the Neutrino USD (USDN) depo. USDN, the algorithmic stablecoin of the WAVES blockchain platform, has been struggling to maintain its peg to the US dollar during the past few months. To stake USDN, users need to stake WAVES in Neutrino, a protocol based on WAVES.

Sasha Ivanov, the founder of the WAVES protocol, has attempted to calm fears about a death spiral by announcing that USDN will recover and WAVES will recover. Don’t go to zero. However, he also announced that he plans to issue a new stablecoin once his plan is set in motion Resolve USDN depeg, which is currently at $0.50. USDN decreased by 46% in the last 13 days.

Neutrino USD (USDN)
USDN/USD Daily Chart. Source: TradingView

Waves price broke through important support

WAVES price has declined since reaching an all-time high of $63.88. The downward movement reached a low of $1.44 on December 21.

During the decline, WAVES price broke an ascending support line and the $2.30 resistance area (red icon). Both are considered decisive bearish signals.

Technical indicators also provide a bearish outlook. This is visible in the weekly RSI, which is turning down and is below 50.

If the downtrend continues, the nearest support area will be at $1. Currently, it is most likely a WAVES price projection.

Therefore, the trend cannot be considered bullish until WAVES reclaims the $2.30 horizontal zone and validates it as support.

Waves Price Breakdown
Waves/USDT Weekly Chart. Source: TradingView

short term relief

Finally, the six-hours chart shows that WAVES token price broke above a descending resistance line in the 24-hours after the RSI generated a bullish divergence (green line). The divergent trend line is still intact.

The six-hour reading suggests a relief rally towards the $1.88 or $2.14, 0.382 and 0.618 Fib retracement resistance levels, respectively.

However, given the bearish readings from the daily time frame, further downside can be expected later.

Waves Price Reduction
Waves/USDT six-hour chart. Source: TradingView

To conclude, the long term reading for WAVES is bearish due to a breakdown from the key support levels. Furthermore, the USDN stablecoin depo has aided in this downward move. As a result, the most likely WAVES price forecast is a decline towards $1. Retaking the $2.10 area would invalidate this bearish hypothesis.

For the latest crypto market analysis from BeInCrypto, click here.

disclaimer

BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.





Source link

Leave a Comment