WAVES price crashes 50% in one week — watch these support levels next
Waves (WAVES) lost around half its value in April so far and risks further correction due to weakening technical and fundamental factors.
WAVES dropped from nearly $64 on March 31 to around $27.50 on April 7 — down by over 55%. As it fell, the WAVES/USD pair also broke below a key support confluence, hinting further correction.
Notably, the confluence comprises WAVES' 50-day exponential moving average (50-day EMA; the red wave) and the 61.8% Fib line of the Fibonacci retracement graph — drawn from $64-swing high to $8.34-swing low.
Now broken, they suggest that WAVES' path of least resistance is to the downside, with $25 acting as interim support due to its historical relevance as a price floor in October 2021 and March 2022.
Additionally, WAVES' daily relative strength index (RSI) also shows room for a further decline, being only 11 points away from slipping below the "oversold" threshold of 30.
Meanwhile, breaking below $25 would risk crashing WAVES' price to its 200-day simple moving average (200-day SMA; the orange wave) near $20, coinciding with the 0.786 Fib line, about 30% lower than today's price.
The bearish setup emerged amid allegations that equaled the Waves Platform with a "Ponzi," namely a Twitter thread penned by 0xHamZ, who accused Waves' team of artificially inflating the price by more than 650% from February to March.
Meanwhile, Neutrino USD, a "stablecoin" backed by WAVES reserves, also lost its U.S. dollar peg following 0xHamZ's accusations, further dampening market sentiment.
Related: Bitcoin slides below $44K in April first as trader warns ‘something is off’ with BTC
Jolyon Horsfall, the co-CEO of NFT prediction platform SparkWorld, noted that the Waves Platform founder, Sasha Ivanov, "will need to step up
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