Waves (WAVES) continued its price rally further this week, even as its main crypto rivals have fluctuated between losses and gains elsewhere in the market.
A wave of 230% waves
The WAVES/USD trading pair was up nearly 75% this week, reaching about $31, its best level since October 28, 2021. The rally came as part of an upward retracement move that saw it rise just over 230% in three weeks.
WAVES/USD Weekly Price Chart. Source: TradingView
By contrast, Waves’ biggest rival in the smart contracts sector, Ethereum, underperformed, with native token Ether (ETH) falling nearly 2% in the past three weeks. Similarly, Bitcoin (BTC), the leading cryptocurrency by market capitalization, underperformed over the same period, rising just over 1%.
Neutrino buys the Waves dip
As Coin-Crypto previously mentioned, Waves’ price rally could have surfaced in the wake of successive optimistic updates, including the launch of a $150 million fund to support Waves-based decentralized application projects and partnering with Allbridge to facilitate interoperability between Waves. and other blockchains.
In addition, the period of Waves uptrend also coincided with an increase in influx to Neutrino’s smart contract† Notably, the supply of Waves tokens in the algorithmic stablecoin protocol increased from 43.38 million on February 15 to 51.80 million on March 8.
The total number of Waves tokens in Neutrino smart contract as of March 10, 2022. Source: Defi Llama
From March 10, Neutrino . will be held approximately 47.31 million Waves tokens in its smart contract, with the total locked-in value worth $1.35 billion, nearly 60% of the total value locked in the Waves ecosystem.
Notably, Neutrino enables the creation of multiple decentralized stablecoins that maintain their US dollar peg by collateralizing waves stored in Neutrino’s official smart contracts. The first such stablecoin is Neutrino USD (NUSD).
In the past 30 days, Neutrino has spent more than $135 million in NUSD, supported by reserves that have increased from approximately $530 million to – as noted above – $1.35 billion. Meanwhile, an increasing number of Waves tokens delivered in Neutrino’s smart contracts underlined that it has been one of the most active Waves buyers since Feb. 10.
NUSD market cap in the last 30 days. Source: CoinMarketCap
When the price of Waves rose, Neutrino seemed to have done so kept the tokens in its “reserve fund” to support the NUSD in the event of a subsequent price drop, limiting the downward bias.
‘Triple top’ setup
Technically, Waves may be sketching a triple top against the US dollar as the price moves closer to testing its all-time high near $42 for the third time since May 2021.
WAVES/USD weekly price chart with triple top. Source: TradingView
In detail, triple tops form when the price forms three highs with pullback to a so-called “swing low” in between. First, they show that markets cannot penetrate the peak areas, i.e. they cannot find new buyers near/at the highest level. Later, the price falls back to the swing low.
Related: Waves risks ‘death cross’ plunge after price jumps 88% in six days
As a result, if Waves fails to close above the first and second tops, there will be a good chance of falling into the swing-low region between $11 and $13 – the range that has supported the three highs. .
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