As most coins struggled this week to put up any decent upward momentum, WAVES was quite literally making waves. The coin, in fact, saw staggering gains of about 100% after the new Binance announcement. But so far, WAVES has somewhat retreated. Here is what we know thus far:
Binance announced that it would start accepting WAVES as collateral on its loans.
The coin surged nearly 100% to hit highs of around $20.5.
WAVES has since retreated slightly and is now trading at around $18.
Data Source: Tradingview
WAVES Price action and analysis
The Binance news was quite frankly a big one, and it showed in the pricing. Even as the broader crypto market slowed in performance, WAVES reported staggering gains. However, we have seen the price retreat from $20.5 to $18. We expect this to continue before WAVES stabilizes around the $15 mark.
But there are some risks to keep in mind. The rally this week has put WAVES on a risky death cross. This is when the long-term moving average of a crypto coin goes above the short-term average. The death cross creates a high risk of a significant pullback in the price.
In fact, the last time WAVES entered a death cross was in 2018, and the coin crashed by nearly 85%. Now, we are not saying this will happen. But a more significant pullback on the coin will come, no doubt.
Is WAVES good for long-term investing?
The answer is yes. WAVES is associated with the Waves Protocol, a decentralized open-source platform designed for the creation and deployment of scalable apps.
The project has raised a lot of money from investors and is making very serious moves on the metaverse. All these things will go a long way in delivering value for the long-term holders of this asset.
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