As most coins struggled to gain any good momentum this week, Wave’s It was really making waves. In fact, the coin saw an astonishing gain of almost 100% following the new Binance announcement. But so far, WAVES has held back somewhat. Here’s what we know so far:
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Binance announced that it will begin accepting WAVES as collateral on its loans.
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The coin rose almost 100% to a high of around $20.5.
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Waves has since retreated a bit and is now trading around $18.
Data Source: Tradingview
Waves Price Action and Analysis
The Binance news was quite clearly a big one, and that was reflected in the pricing. Even though the broader crypto market slowed down in performance, WAVES reported surprising gains. However, we have seen a decline in the price from $20.5 to $18. We expect this to continue before WAVES stabilizes around $15.
But there are some risks to keep in mind. This week’s rally has put WAVES on a risky death cross. This occurs when the long-term moving average of a crypto coin moves above the short-term average. The death cross poses a high risk of significant price fluctuations.
In fact, WAVES last entered the death cross in 2018, with the coin crashing around 85%. Now we are not saying that this will happen. But there will be another significant drawback on the coin, no doubt.
Is Waves good for long term investment?
the answer is yes. Wave’s Waves Protocol, a decentralized open-source platform designed for building and deploying scalable apps.
The project has raised a lot of money from investors and is taking very serious steps on the metaverse. All these things will go a long way in providing value for the long term holders of this asset.