Waves price has crashed hard in the past few weeks, making it one of the worst-performing cryptocurrencies at present in the industry. The $WAVES token plunged to a low of $1.25 on Wednesday morning, its lowest swing since January 2023. It has plummeted by more than 75% from its lowest point this year.
Zombie coin gets delisted
Waves is one of the top tokens that did well in the first altcoin frenzy in 2021, a move that pushed its market cap to over $3.5 billion. This surge happened as investors predicted that it would be a crucial competitor to Ethereum, the biggest blockchain in the industry.
Waves has superior features than Ethereum, including faster speeds and low transaction costs, which made it attractive to developers. However, three years down the line, Waves has become a zombie blockchain.
A zombie blockchain is defined as a network that has little activity in the ecosystem. For example, according to DeFi Llama, Waves has only 7 DeFi platforms like Vires Finance, Waves Exchange, and PuzzleSwapOrg.
It has a total value locked (TVL) of just $13 million, a figure that is significantly small since the entire DeFi industry has over $100 billion in assets. Waves (WAVES) has been passed by newer networks like Sui, Arbitrum, and Blast.
The Waves coin also crashed after Neutrino, an algorithmic stablecoin in its ecosystem lost its peg in 2022. Like Terra USD, the token has never regained its peg and was trading at $0.12 on Wednesday morning.
Meanwhile, Binance, the biggest crypto exchange in the world, decided to delist Waves. This decision was likely because Waves sees minute daily trading volume. Data by CoinGecko shows that the total volume in the past 24 hours was $50 million.
Waves price forecast
The daily chart shows that the $WAVES token price peaked at $4.98 in March this year and has now crumbled to $1.2. It has crashed below the key support level at $2, its lowest swing on February 5th of this year. Most recently, the price of Waves crashed below the important level at $1.3043, its lowest level in August last year.
Most importantly, Waves has formed a death cross pattern as the 200-day and 50-day Exponential Moving Averages (EMA) made a bearish crossover. In most cases, this death cross is one of the most bearish signs in the market.
Therefore, the path of the least resistance for Waves is extremely bearish, with the next point to watch being $1.
