RAVE has dropped 79% since ZachXBT's pump-and-dump thread, with dead spot volume and bearish derivatives pointing to a fresh all-time low | Credit: CCN
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Key Takeaways
RAVE has shed 79% of its value since on-chain investigator ZachXBT’s April 18 thread accused project insiders of a pump-and-dump scheme, with the token now trading at $0.63, down from an all-time high of $26.69.
Spot demand has collapsed across the board: daily volume has fallen from, while the Chaikin Money Flow sits at -0.25, mirroring the depressed regime that preceded the April rally.
Derivatives confirm the bearish skew — open interest is down 85% to, and the long/short ratio sits at 0.91, with shorts firmly in control as the market positions for fresh all-time lows.
RAVE, the native token of Web3 music and entertainment project RaveDAO, has shed 79% of its value in the two weeks since on-chain investigator ZachXBT publicly accused project insiders of running a coordinated pump-and-dump.
The token, which surged from roughly $0.26 on April 9 to an all-time high of $26.69 on April 18, a 11,166% rally over just nine days, collapsed 96% in a single 24-hour candle after ZachXBT’s April 18 thread.
The crash wiped roughly $6.3 billion off the token’s market capitalization, pulling it down to about $300 million from a peak of $6.62 billion.
As of May 4, RAVE trades at $0.63, with a market cap of $158 million. With demand almost absent across the token spot and derivatives market, it eyes a new all-time low.
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Readings from the daily chart show that RAVE’s daily trading volume has fallen sharply over the past two weeks.
After spiking to a year-to-date high of $88 million two days after ZachXBT’s thread — driven by panic selling — volume has tapered alongside price, with daily turnover now sitting at just $2.78 million.
When price and trading volume fall together, it signals fading interest from both buyers and sellers.
For a token in a downtrend, this is a bearish setup for RAVE. The thin volume means there is no incoming demand to absorb selling pressure, and any fresh selling would push the price lower with very little resistance.
Moreover, RAVE’s Chaikin Money Flow (CMF) confirms this bearish outlook picture. The indicator, which measures money flowing in and out of an asset by combining price and volume, has dropped firmly below zero and is currently at -0.25.
The current reading mirror’s RAVE’s pre-rally regime. From late February through early April, the token’s CMF indicator remained negative alongside flat, depressed price action.
With CMF back below zero and trending lower, the indicator is signaling a return to the same low-demand regime that preceded the pump.
Derivatives Traders Are Positioning Short
The bearish read extends to the altcoin’s derivatives market. Open interest in RAVE futures has been declining, suggesting traders are closing out positions. Per Coinglass, this sits at $95.05 million, down 85% since ZachXBT’s April 18 thread.
When an asset’s open interest declines as its price falls, it signals capitulation. It means capital is leaving RAVE, with no one stepping in to deploy fresh leverage to defend it.
The long/short ratio confirms the bearish skew. The 24-hour ratio flipped below 1 on April 24 and has trended steadily lower since, with shorts now firmly in control. At press time, this stands at 0.91.
A reading below 1 means more traders are positioned short than long, signaling that the market expects further downside.
Price Discovery Below $0.60 Is on the Table
RAVE appears headed for further price discovery below current levels. As of this writing, the altcoin hovers above the support floor formed by its all-time low at $0.01.
With buy-side pressure faltering, RAVE risks plunging below this price floor to touch a new price low.
Conversely, a resurgence in demand would invalidate this position. If profit-taking stalls, RAVE could witness a rebound and climb to $6.13.
It remains key to note that, as ZachXBT flagged, the wallets linked to the RaveDAO operators still hold the vast majority of the supply. Therefore, any move to distribute those tokens would pull prices lower.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
