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WAVES Gets Dragged Down By USDN, Despite Pumping Investor Distribution

There is enormous negative sentiment surrounding USDN. And with USDN continuously falling off its track, it’s also pulling WAVES down.

WAVES is the native token of the Waves blockchain. According to CoinMarketCap, the token is up by 0.23% or trading at $1.57 as of this writing.

There is very little improvement with its current figures.

  • Token up by 0.23% or trading at $1.57
  • USDN extremely volatile
  • Crypto down by 45% in the past couple of weeks

Waves blockchain confirmed the plunge of the Neutrino USD (USDN) stablecoin but insisted that the USDN, while built on top of the ecosystem, is completely detached from WAVES. 

Nevertheless, as the value of USDN declined, it seems to be pulling WAVES further down as well.

Stablecoins are digital currencies whose value is anchored to that of a stable value asset, such as a fiat currency or a commodity price.

The excessive volatility of Bitcoin (BTC) and other major cryptocurrencies has made crypto investments less appropriate for everyday transactions; stablecoins try to address this problem by providing a more “stable” alternative.

WAVES Down By 99% Off Its April 2022 ATH

Blockchain founder Sasha Ivanov has urged different crypto exchanges on Wednesday to cut off the futures markets that are connected to the crypto as she insists that it’s doing more harm than good.

The crypto exchanges included Kraken, Bybit, Binance, and OKX.

Ivanov on a Twitter post said:

“They are a breeding ground for FUD and making money off short positions, profitable because of it. I kindly ask all centralized exchanges to disable Waves future markets.”

Evidently, the blockchain native currency has nosedived by more than 45% as seen in the past couple of weeks.

In fact, its numbers now are completely off-track as it’s down by as much as 99% from its ATH as seen in April 2022.

Stablecoin Acting Erratic Lately

USDN has been extremely volatile. 

The token’s most recent de-peg came following South Korea’s digital asset exchange association issuing a warning.

According to Wu Blockchain, the Korean Federation of Exchanges (KFE) has issued an “investment warning” for WAVES.

The reason for this is because of the erratic price movements of the USDN stablecoin, which is intended to keep its $1 peg at all times.

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Can WAVES Flow Back From Its Low Ebb And Reclaim $4.6?

The month of September for WAVES didn’t look good as the coin registered a sharp downward pattern. The market is looking bearish as WAVES slipped below the key $4.6 level.

  • Crypto market looking bearish for WAVES
  •  WAVES key support retests the $4.3 zone
  • OBV shows a weakening in selling volume

Bitcoin, the king of crypto, climbed to $19.8K, forcing the retreat of the bears and allowing the bulls to recharge.

In the event that Bitcoin nosedives lower than $19K, this could inevitably pull the other cryptocurrencies down with it.

On the other hand, WAVES has shown some improvement as it dashes above the $4 zone in the last two days.  

Waves is a multi-purpose blockchain platform which supports different types of use cases including decentralized applications and smart contracts.

The blockchain platform’s native token is WAVES, an uncapped supply coin used for payments such as block rewards.

$4.3 Revisited As Key Resistance Zone

Based on the 4-hour chart, WAVES was able to recover and jump to the $4.3 level following its recent correction.

In the next days, WAVES price is seen to bounce back in the $4.5-$4.6 range. A couple of days ago, the key support found at $4.3 have been revisited as a key resistance zone.

Source: TradingView.com

Earlier, its price has once again dropped below the $4 range. On the 1-hour chart, it retreated once again or back to the $4.3 level following its latest setback.

The price on the higher timeframes is seen to be massively bearish than bullish. Additionally, the market is now leaning toward the sellers as noted in the past few weeks.

WAVES was aiming to hit the $4.3 mark a few days ago but was barred and pushed towards the $3.9 mark instead.

With that being said, going long in the $4.02 support level wouldn’t be a wise move, especially with the risks involved.

With the token unable to clutch strongly on the $4 zone, this led to the bears gaining enough traction to dominate. Additionally, a selling opportunity is predicted to occur once a retest is done on the $4 mark.

WAVES RSI Falls Below 50

According to CoinMarketCap, WAVES price is up by 2.53% or trading at $4.01 as of press time.

The Fibonacci retracement levels at the $4.0 and $4.09 range can hinder the buyers’ intent to press on the gas in terms of prices.

The token’s relative strength index is seen to have traversed below 50 further strengthening the validation of bearish momentum.

Also, the CMF is seen to have dropped beneath the -0.06 level showing the rapid loss of capital. In terms of On Balance Volume, the token seems to signify weakened selling as seen in the past few days. More so, the OBV also shows that there is no indication of a sharp pullback.

The price is seen to have plunged below the $4 mark. It was seen to pause at the $3.94 level which means a retest at the $4 mark could tick off a selling opportunity.

Crypto total market cap at $902 billion on the daily chart | Source: TradingView.com

Featured image from The Coin Republic, Chart: TradingView.com

(The analysis represents the author’s personal views and should not be construed as investment advice).

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Small Cap Altcoins Beat Bitcoin And Other Crypto Assets 10 To 1, But Why?

The Small Cap altcoins index has been outperforming the larger coins’.  As NewsBTC has been reporting, smaller caps have been looking like the best investment in the past months. Now that the larger Caps found relief recording gains once more during March, the Smaller Cap is still crushing the numbers.

Total crypto market cap at $2,1 trillion in the daily chart | Source: TradingView.com
Small Caps Outperforming

According to data from the latest Weekly Report from Arcane Research, the whole crypto market has seen relief during March. However, even with recent gains, the Small Cap Index still has completely outperformed the other indexes.

As seen in the chart below, Bitcoin, the Large Cap, and Mid Cap indexes have all seen relevant gains during March in the 8-11% increase range. But compared to the Small Cap Index, the larger indexes are lagging behind its massive 40% gains.

Source: Arcane Research

The massive gains have a few lead characters. Primarily, the Waves token is outshining all top 50 coins by market cap. It has seen surprising growth in the past month with a 300% increase in price.

Source: Arcane Research
Why Is The Waves Token Outperforming?

Waves is a global open-source platform for decentralized applications. Their native token just rallied 50% in 24 hours, which might have been a result of the Wave Labs launch, a U.S. venture that intends to headquarters in Miami. As the data points out, the token came out of the past week as the best performer of all top 50 coins by market cap.

Source: Arcane Research

As per Wave Labs press release, the venture aims to integrate Waves with leading blockchain protocols, form an Ecosystem fund, support projects building on Waves, and other strategic international plans aimed to become the “growth engine for the Waves ecosystem” so it can reach mass adoption.

“With the founding of Waves Labs, the ecosystem fund, and the extremely talented team in place, I do not doubt that Waves will reach mass adoption in 2022 and beyond,” says Sasha Ivanov, Founder of Waves.

The Waves 2.0, the new version of Waves Consensus based on Practical Proof-of-Stake Sharding (PPOSS), has been gaining new attention as it promises a “highly scalable and EVM-compatible network” set to start this spring.

Still unknown in the U.S. compared to other Small Cap altcoins, Waves has a lot of room to grow into. This incentivizes investors as they might see a potential for the digital asset to deliver larger returns.

Even though smaller coins and projects are riskier and more likely to fail, their higher volatility and size can also mean that they can grow exponentially and show greater returns than much larger coins like Bitcoin and Ethereum over the same period of time. Plus, the communities that are formed around Small Cap altcoins projects are often committed to its trajectory and seeing a boost in the price.

However, even though they can turn into greater returns, smaller altcoins can also crash the hardest.

Related Reading | Small Cap Altcoins Continue To March Ahead Of Bitcoin And Ether Gains

More on the Waves token, the pair WAVESBTC just hit a new high, breaking through previous peaks. Traders have been long expecting an ‘alt season’ to happen soon and Waves’ movements could be seen as a bullish sign.

WAVESBTC broke a new high | Source: TradingView.com
Is Altcoins Season Around The Corner?

Many investors have been expecting an altcoin season to happen this year. This dominance of altcoins over Bitcoin could happen after a BTC bull run as other digital tokens make breakthroughs and gain dominance over the market.

Bitcoin seems to be making big moves this week as it broke its 3-month consolidation. A bullish ascending triangle pattern is on the lookout along with a possible around-$51k target. In the crypto market, coins usually follow other coins’ moves. This means that Ethereum can follow Bitcoin’s price movements, and then other altcoins as well.

It can be similar for the smaller coins. If some altcoins are greatly outperforming, others can follow. The movement in question seems to be whether BTC can truly go above its $48k latest high. And as the report noted “the bitcoin dominance has been sitting at its highest levels since November,” and the time for altcoins might be around the corner if optimistic market sentiment continues.

Related Reading | Bitcoin Dominates Altcoins During War-Torn Month Of February