The price of WAVES surged as much as 70% on March 29, reaching a new all-time high of around $54. Traders who bet against the rise of Waves, the native token of the WAVES blockchain network, suffered losses worth million dollars as the WAVES/USD pair extended its rally to a record level in the last 24 hours.
The price rally, which began on Feb. 22 when WAVES priced at $8.25, triggered around $13.75 million worth of liquidations due to crypto-based futures on a tight 24-hour time frame. , Coinglass data shows.
About $11 million of the total liquidated positions were short.
Neutrino behind the WAVES rally
As Cointelegraph previously covered, traders may have jumped on the WAVES market after weighing in on its three consecutive bullish upgrades: migration to Waves 2.0, launch of a $150 million fund, and partnership with Allbridge.
Edson Ayllon, product manager at dHEDGE, a decentralized asset management platform, told Cointelegraph that the euphoria surrounding the launch of Waves 2.0 in October was reflected in the increase in total value locked (TVL) in the Waves ecosystem. which 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 that Ethereum has been working on for years on its roadmap.”
Interestingly, Neutrino, a stable price “valorization” algorithmic protocol built on top of the Waves blockchain, featured heavily behind Waves’ TVL surge.
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 enables the creation of decentralized stablecoins that maintain their peg to the US dollar by collateralizing WAVES tokens. The protocol has launched only one stablecoin project so far, called Neutrino USD (USDN).
The USDN supply increased from around 800 million to 832 million on a tight 24-hour time frame, coinciding with the surge of WAVES input into the Neutrino smart contract. That featured Neutrino as one of the active WAVES buyers in the last 24 hours.
Whats Next?
WAVES appears to have been breaking out of a bullish continuation pattern called a “bullish flag”.
In detail, the chart pattern resembles a downward sloping channel that appears after a strong upward price move (called a “flag pole”). In a perfect scenario, it is resolved by jumping into the level at a length potentially equal to the size of the flagpole.
Applying the classic interpretation of the bull flag pattern to the ongoing price action of WAVES suggests a continued price rally towards $100, as shown on the chart below.
However, the weekly WAVES Relative Strength Index (RSI) has become overbought, a sell signal. That could push the WAVES/USD pair back towards $34 as its interim support level. That would also mean that traders are heading back to the top of the bull flag for another bullish confirmation.
As a result, a continued sell below $17 would risk invalidating the entire flag setup.
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