As the price of WAVES rises to its strongest level in over four months, Neutrino was buying the decline.
Even while its main crypto rivals wobbled between losses and gains elsewhere in the market, Waves (WAVES) extended its price climb into this week.
A 230 percent increase in Waves
This week, the WAVES/USD trading pair soared about 75% to around $31, its highest level since Oct. 28, 2021. Its advance was part of a three-week upside retracement move that saw it rise by a little more than 230 percent.
In comparison, Ethereum, Waves’ main competitor in the smart contract space, has underperformed, with its native token Ether (ETH) falling over 2% in the last three weeks. In the same period, Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, underperformed, gaining by just over 1%.
The Waves dip is purchased by Neutrino.
Waves’ price rally may have emerged as a result of back-to-back positive updates, including the launch of a $150 million fund to support Waves-based decentralized application projects and a partnership with Allbridge to facilitate interoperability between Waves and other blockchains.
Furthermore, Waves’ ascent coincided with a boost in its inflow to Neutrino’s smart contract during that time. The supply of Waves tokens in the algorithmic stablecoin protocol increased significantly from 43.38 million on February 15 to 51.80 million on March 8.
Neutrino has around 47.31 million Waves tokens in its smart contract as of March 10, with a total value locked of $1.35 billion, accounting for about 60% of the entire value locked in the Waves ecosystem.
Neutrino, for example, allows the formation of several decentralised stablecoins with a U.S. dollar peg by using Waves deposited in Neutrino’s official smart contracts as collateral. Neutrino USD is the first such stablecoin (NUSD).
Neutrino has issued more approximately $135 million in NUSD in the last 30 days, backed by reserves that have risen from around $530 million to as previously noted $1.35 billion. Meanwhile, Neutrino’s smart contracts have been receiving an increasing number of Waves tokens, indicating that it has been one of the most active Waves buyers since February 10.
Neutrino appears to have maintained the tokens in its “reserves fund” when Waves’ price rose, reducing its negative bias and providing backup to NUSD in the case of the next price collapse.
Setup with a ‘triple top’
Waves may be forming a triple top versus the US dollar on a technical level, as its price approaches its all-time high near $42 for the third time since May 2021.
Triple tops occur when the price rises to three peaks, with a pullback to a so-called “swing low” in between. For starters, they demonstrate that markets are unable to enter peak areas, i.e., they are unable to locate new consumers near/at the top level. The price later drops to the swing low.
As a result, if Waves fails to close above its first and second tops, it will be very likely to decline towards the swing-low level between $11 and $13, which has been supporting the three peaks.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.