The recent massive plummet had WAVES beneath a crucial support floor, and the alt risks further downswings.
Waves (WAVES) lost over 50% in April. The alt might witness more downside because of weakened fundamental and technical factors. For now, the downward journey seems easy for cryptocurrency.
WAVES Risks another 30% Crash
WAVES declined from $64 on 31 March to $27.50 on 7 April, translating to over a 55% drop. The downside journey had WAVES/USD breaking under a vital support confluence, suggesting more downside.
Notable, this confluence houses the 50-day Exponential Moving Average and 61.8% FB retracement graph (plotted from the swing high of $64 to the lows of $.34). Now violated, it means WAVES’ road with less resistance is the downward one.
The $25 level serves as interim support because of its relevance as t served as a barrier in 2021 October and 2022 March. Moreover, the dally Relative Strength index reveals room for more downside, staying 11 points away from dipping beneath the oversold territory of 30.
Losing ground at $25 may welcome massive downswings that take WAVES to the 200-day SMA near the $20 value area, matching the 0.76 Fibonacci line, nearly 30% lower than WAVES today’s prices.
The bearish narrative emerged following accusations that Waves Platform resembles a Ponzi scheme. The assertions appeared from the 0xHamZ Twitter thread, which accused the WAVES team of inflating prices artificially by over 650% between February and March.
The clams had Neutrino USD losing its US dollar tie, further diminishing market sentiment. Neutrino USD s a WAVES reserves’ backed stablecoin.
NFT prediction site SparkWorld’s co-CEO Jolyon Horsfall stated that WAVES founder Sasha Ivanov should step up for the token’s revival and the project’s alignment with its ambitious goals. Horsfall warned that WAVES plummets would likely continue, dragging the price to 30-day lows of $21.
Bull Flag Retest?
Nevertheless, WAVES appears ready to defy the bearish forecast as t keep its long-term upside intact. Meanwhile, the current retracement had WAVES nearing another double-layers foothold, defined by the 20-week Exponential Moving Average and the top trend-line of the past bull flag pattern.
A rebound from this support confluence will likely propel WAVES towards $70, the bull flag targets.