This week most cryptocurrencies tried to build a meaningful upward impulse, and WAVES was no exception. After a new announcement from Binance, the token climbed roughly 100%. Since then WAVES has retraced somewhat. Here’s the current situation:
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Binance announced it will accept WAVES as collateral for loans.
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The token surged nearly 100%, reaching an intraday high near $20.50.
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WAVES has since pulled back and is now trading around $18.
Data source: TradingView
WAVES: price action and analysis
The Binance announcement clearly had a major impact on the price. Even while the broader crypto market showed only modest momentum, WAVES experienced a substantial rally. After peaking near $20.50, the token corrected to roughly $18. Analysts expect further decline and stabilization closer to the $15 level.
There are important risks to consider. Because WAVES rose sharply this week, its moving averages have reached a configuration sometimes called a “death cross,” where a longer-term moving average crosses above a shorter-term average. Historically, that formation can signal higher odds of a significant price drop.
WAVES previously entered a death cross in 2018, and the token fell by nearly 85% at that time. This past event does not guarantee the same outcome today, but it does indicate the potential for a meaningful retracement.
Is WAVES suitable for long-term investment?
Short answer: yes, for investors willing to accept the risks. WAVES is linked to the Waves Protocol, an open-source, decentralized platform designed for building and deploying scalable applications.
The project has raised substantial funding and is actively pursuing initiatives in the metaverse and related areas. These developments support the case for long-term value appreciation, meaning long-term holders could realize attractive returns if the project continues to execute.
If you decide WAVES fits your strategy, you can purchase the token on the platform below.