The Price Of Waves Has Risen By 230% In Only 3 Weeks — Can A 'Triple Top' Derail The Rally?

2022-03-11 | Selina Mathew

The Price Of Waves Has Risen By 230% In Only 3 Weeks — Can A 'Triple Top' Derail The Rally?

Waves (WAVES) extended its price climb into this week, despite the fact that its leading cryptocurrency rivals fluctuated between profits and losses somewhere else in the marketplace.

A 230 percent increase in Waves

This week, the WAVES/USD trading pair increased by about 75% to around $31, its highest level since Oct. 28, 2021. Its advance was part of an upward retracement trend that saw it rise by slightly more than 230 percent in three weeks.

In comparison, Ethereum, Waves' main competitor in the smart contracts industry, was disappointed, with its native token Ether (ETH) falling by about 2% in the previous three weeks. Likewise, Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, failed during that period, gaining by just above 1%.

Neutrino purchases the Waves dip

As previously reported by Cointelegraph, Waves' price increase may have resulted from a series of positive updates, including the launch of a $150 million financing to support Waves-based decentralized application initiatives as well as a collaboration with Allbridge to enable interoperability among Waves and other blockchains.

Furthermore, the upswing in Waves corresponded with a boost in its inflow to Neutrino's smart contract. Interestingly, the quantity of Waves tokens under the algorithmic stable coin protocol grew from 43.38 million on February 15 to 51.80 million on March 8.

Since about March 10, Neutrino had approximately 47.31 million Waves tokens in its smart contract, with the entire value secured amounting to $1.35 billion, accounting for over 60% of the total value locked within the Waves network.

Importantly, Neutrino allows for the establishment of several decentralized stable coins that are pegged to the US dollar by collateralizing Waves held in Neutrino's official smart contracts. Neutrino USD is the inaugural such stablecoin (NUSD).

Neutrino has released over $135 million in NUSD throughout the last 30 days, supported by reserves that have increased from roughly $530 million to — as previously stated — $1.35 billion. Nevertheless, the rising supply of Waves tokens into Neutrino's smart contracts demonstrated that it was among the most prominent Waves purchasers since February 10.

As the price of Waves rose, Neutrino appears to have maintained the tokens in its "reserves fund" to offer backup to NUSD in the case of a price decline, reducing its negative bias.

'Triple top' configuration

Theoretically, Waves could be forming a triple top versus the US dollar as it approaches its all-time high around $42 for the third time as of May 2021.

In further depth, triple tops occur when the price forms three heights with a retreat movement towards an alleged "swing low" in between. Firstly, they demonstrate that markets are unable to enter peak locations, i.e., they are unable to attract new consumers near/at the top level. Eventually, the price returns to the swing low.

As a consequence, if Waves fails to finish beyond its first and second tops, it would be quite likely to decline towards the swing-low level between $11 and $13 — the region that has been sustaining the three peaks.

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