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WAVES Price Crashes 42% Since Binance Delisting – Will $1.30 Hold or Will it Fall Below $1?

Last Updated June 10, 2024 3:07 PM
Valdrin Tahiri
Last Updated June 10, 2024 3:07 PM

Key Takeaways

  • The WAVES price has decreased by 42% since Binance announced it will delist WAVES on June 3.
  • WAVES has broken down from a long-term diagonal support level and reached a horizontal one.
  • Has WAVES started new downward trend, a how low will the price fall if this is the case?

The WAVES price has fallen 97% since its all-time high over two years ago in March 2022. While the price seemingly began a reversal in January 2023, that proved to be short-lived. WAVES reversed trend in 2024, declining over 60%.

On June 3, Binance announced the delisting of WAVES, triggering another downward movement. The current breakdown from a long-term pattern suggests that WAVES could be headed below $1 and possibly toward a new all-time low.

Will WAVES Bounce or Crash?

The WAVES price has fallen since its yearly high of $4.99 on March 14. The decrease paused temporarily in April but resumed in June, accelerating on June 3. The same day, WAVES broke down from a 360-day ascending support trend line. This is a sign that the previous increase has ended.

On June 7 WAVES bounced, confirming the $1.30 horizontal support area, which has existed since June 2023. However, the bounce was weak, and WAVES returned to the area once again.

WAVES Price Upward Movement
WAVES Daily Chart | Credit: TradingView

Even though the MACD and RSI are oversold, they have not generated any bullish divergence yet. Additionally, the June 7 & 8 bounce did not create a bullish engulfing candlestick. Rather, it creates a small bullish one, a portion of which has already been retraced.

As a result, while a short-term bounce is possible, a breakdown and decrease toward a new all-time low is the most likely future outlook.

WAVES Crashes Below Support

On June 3, the WAVES price fell sharply, breaking down from its ascending support trend line and horizontal support area at $2.25. The price fell to a low of $1.63, a decrease of 30% since the start of the day.

The decrease was likely caused as a result of Binance announcing the delisting  of WAVES from June 17. This follows previous delistings from Binance.US  and Upbit. 

There has been speculation that the decrease is related to the depeg of WAVES’ stablecoin Neutrino, which currently trades at $0.03. However, the stablecoin started depegging in 2023 and was trading at $0.03 in March of that year.

To the contrary, the WAVES price increased over 300% between June 2023 and March 2024, and has fallen since, with the decrease accelerating in June.

WAVES Price Breakdown
WAVES/USDT Daily Chart | Credit: TradingView

However, the depeg could have contributed to the delisting. According to Binance, there are numerous reasons that the exchange looks at to arrive at a decision, some of them being stability of the network and the commitment of the team to the project. It is possible that WAVES is failing these categories due to the Neutrino depeg.

In any case, the next closest support area is at $1.45, last reached in August 2023. Technical indicators suggest the price will fall to it. Both the MACD and RSI broke down from their ascending support trend lines and are now trending downward.

What’s Next for the WAVES Price?

The weekly time frame chart shows that WAVES has increased inside an ascending parallel channel since the start of 2023. These channels usually contain corrective patterns, meaning that a breakdown is the most likely future scenario.

The ongoing WAVES price decrease has triggered the breakdown, which will be confirmed with a weekly close below $1.70.

WAVES Long-Term Breakdown
WAVES/USDT Weekly Chart | Credit: TradingView

If this happens, WAVES can fall to the next long-term horizontal support level at $0.55, which is the final support before the all-time low. Similarly to the daily time frame, the weekly RSI and MACD are bearish, supporting the breakdown.

WAVES to Continue Downtrend

The WAVES token price decrease since June 3 was likely accelerated due to the Binance delisting. However, the price action and indicator readings had already been bearish before. Since WAVES is confirming a breakdown from a long-term pattern, it is likely to resume its downward trend toward its all-time low.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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