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Waves Price Prediction: Recovery Intact but Neutrino Risks Remain

Waves Price Prediction: Recovery Intact but Neutrino Risks Remain

Last updated 24th Jun 2022
Disclosure
  • Waves price has jumped by more than 140% from its lowest level in May.
  • Developers have announced a revival plan for the network.

Waves price has done remarkably well in the past few days even as other cryptocurrencies struggle. The token is trading at $9.8, which is about 140% above its lowest level last week. Its market cap has jumped to about $998 million.

Waves is a risky cryptocurrency

Waves is a blockchain project that aims to be a better alternative to Ethereum. It has smart contract features that make it possible for people to build decentralized applications in all industries like DeFi and non-fungible tokens.

Waves is one of the riskiest platforms in the cryptocurrency industry. The biggest risk is that Neutrino is the stablecoin that powers its ecosystem.

Like Terra USD, Neutrino is an algorithmic stablecoin that is not backed by anything. Instead, the coin achieves stability through the concept of arbitrage and algorithms.

A few months ago, Waves price declined sharply after Neutrino lost its peg. Fortunately, unlike Terra USD, its algorithm worked and the coin is now trading slightly below $1. However, there is still risk that the stablecoin will lose its peg. In a statement this week, Waves founder agreed that they need to work on the coin, which now has a market cap of over $800 million.

Waves price is also rising as interest in its DeFi applications surges. According to DeFi Llama, the network has a total value locked (TVL) of more than $1.1 billion, making it the tenth biggest smart contract platform globally. At its peak, its DeFi platform had a TVL of more than $4.4 billion.

Another risk is that Vires Finance has a dominance of 62%. This is a risk since a small challenge in its ecosystem will likely have a major impact on the ecosystem. For example, the network recently had a liquidity crisis that led to a bank run.

Last week, Waves developers unveiled a revival plan for the ecosystem. The plan involves fixing the Neutrino peg, solving the liquidity crisis, and setting daily withdrawal limits for USDC and USDT.

Learn more about how to buy Tether.

Waves price prediction

On the 4H chart, we see that the Waves price has made a strong recovery recently. In this period, it has managed to retest the important resistance level at $11.95, which was the lowest level on May 3. It has moved above the 25-day and 50-day moving averages while the MACD moved above the neutral point.

Therefore, at this point, the near-term outlook for Waves is neutral, with the key level to watch being at about $12. If it moves above this level, it will open the possibility of the coin rising to $15.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.