February 3, 2023

  • The continued fall in the value of stablecoin USDN led to a fall in the price of WAVES.
  • With negative sentiment behind the token, the chances of an upside are limited.

Despite recent claims that Neutrino USD [USDN] not inextricably linked Waves [WAVES]the recent problems of the algorithmic crypto-collateralized stablecoin led to a serious drop in the token’s value.

In a blog post published on December 8, the ecosystem confirmed that the incessant de-pegging of its USDN stablecoin failed to increase its volatility, as “USDN is a separate project built on Waves blockchain that uses WAVES as collateral” and “it is not intrinsically linked to WAVES token.” However, as the value of USDN fell, it dragged WAVES down with it.

read waves’ [WAVES] Price Forecast 2022-23

In an effort to restore confidence in these assets, the founder of the WAVES protocol, Sasha Ivanov, assured investors in a tweet on Dec. 20 that the USDN stablecoin would be fine and the token would not be reduced to zero.

However in a later tweat, he confirmed his decision to launch a new stablecoin; an act that failed to bolster investor confidence.

Furthermore, on December 21, Ivanov asked several centralized exchanges, including Binance, Kraken, OKX, and Bybit, to shut down the futures market for the token. According to the founder

“They are a breeding ground for FUD and therefore make money from short positions.”

All attempts to calm fears of a possible death spiral for WAVES were futile, as many believed the token would ultimately fail.

WAVES in an ocean of losses

At the time of writing, WAVES switched hands for $1.50. According to CoinMarketCapthe asset’s value fell 58% over the past two weeks.

WAVES’s assessment on a daily chart revealed that the token has been severely divided over the past few weeks. As a result, when the price fell, many holders exited the market while taking significant losses on their investments.

Furthermore, the token’s Money Flow Index (MFI) rested at 5.36 at the time of writing, showing that it was oversold. Similarly, the Relative Strength Index (RSI) was seen far from neutral at 27.46.

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WAVES’s on-balance volume (OBV) fell 8% over the past two weeks and was stuck at 530 million at the time of writing. When the price of an asset and its OBV make lower highs and lows, the downtrend will usually continue. With increased negative sentiment behind the token, the downtrend could continue.

Finally, WAVES’ Chaikin Money Flow (CMF) rested below the midline in a downtrend at -0.18. A negative CMF is expected in a seller-dominated market, with a further decline expected given the state of the ecosystem.

Source: TradingView

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