RAVE price has gone parabolic recently, moving from a low of $0.14 earlier this month to nearly $20. This surge has brought its market capitalization to over $3.8 billion, with its 24-hour volume rising by 13% to over $847 million. Still, the RaveDAO team has issued a major warning to investors considering buying into the rally.
RaveDAO Issues Major Warning as RAVE Crypto Surges
The RAVE token has moved from nowhere into becoming one of the biggest coins in the crypto industry. This rally happened as investors embraced the Fear of Missing Out (FOMO).
Data shows that the volume has jumped sharply in the past few days, reaching a high of $854 million. Similarly, data compiled by CoinGlass shows that the futures open interest jumped to over $520 million, up from near zero last week.
In an X post, the developers warned traders to be careful after observing the elevated volatility. They stated that they’ve observed heightened market volatility in $RAVE. They encouraged all users to remain mindful of the associated risks and to exercise caution, especially when using leveraged positions.
Historically, such unexplained surges are usually associated with both FOMO and market manipulation. In most cases, these surges often lead to substantial declines as the gains are usually not backed by fundamentals.
Also, RaveDAO’s token is likely to fall soon because the recent surge appears to have been driven by a short-squeeze in a thin, highly concentrated supply, followed by insider-linked token transfers and signs of overbought momentum exhaustion.
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A good example of this is MYX Finance, which jumped from $0.0550 in August last year to a high of $20 in September. Today, the token has dropped to $0.3160. Similarly, Internet Computer token jumped to $750 shortly after its launch in May 2021. Today, it has dropped to $2.4.
According to its white paper, RaveDAO describes itself as the TEDx for music, where local organizers can apply to run their local chapters under a unified global framework. It also aims to launch the world tour, an event that aims to attract thousands of users.
RAVE Price Technical Analysis
The daily timeframe chart shows the RAVE token has jumped from a low of $0.14 last week to nearly $20 today. The token remains substantially above all moving averages, putting it at risk of a major bearish reversal.
It has also become highly overbought, with the Relative Strength Index (RSI) and the Stochastic Oscillator at extremely overbought levels.
Therefore, the token will likely experience a strong bearish reversal in the near term as investors take profits. This retreat will also take place as the token moves into the markup phase of the Wyckoff Theory. If this happens, it may drop to below $5 as soon as this week.
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