The Recent Surge

On March 29, the price of WAVES made headlines, skyrocketing by a staggering 70%, ultimately hitting an all-time high of about $54. This sudden leap sent shockwaves through the trading community, as many who wagered against this rise were left nursing heavy losses amounting to millions.

When Liquidations Go Wild

The prior recovery phase began on February 22, when WAVES’s price twinkled at a mere $8.25. This dramatic increase led to approximately $13.75 million in liquidations related to crypto futures trades within just 24 hours, according to data sourced from crypto analysis platforms. Notably, short positions accounted for around $11 million of these liquidations, indicating that pessimists were caught in the crossfire of this market frenzy.

What’s Driving the Hype?

Traders seem to have hopped onto the WAVES express following three significant developments: the upcoming migration to Waves 2.0, a hefty $150 million fund launch, and a strategic partnership with Allbridge. Edson Ayllon, a product manager at a decentralized asset management platform, pointed out that the excitement surrounding Waves 2.0 had a tangible impact, with the total value locked (TVL) in the ecosystem reaching a historic $4.36 billion on that same day.

Neutrino: The Powerhouse Behind the Waves

Interestingly, Neutrino, a protocol designed for price-stable assets operating on the Waves blockchain, played a pivotal role in this rally. Data revealed a massive inflow of nearly 8.91 million WAVES (approximately $450 million) into Neutrino’s smart contract within a day. This influx allowed the creation of decentralized stablecoins, notably Neutrino USD (USDN), which saw its supply jump from about 800 million to 832 million, riding the coattails of the WAVES price surge.

Future Projections for WAVES

Market analysts are eyeing WAVES as it appears to be breaking out of a bullish continuation pattern known as a ‘bull flag.’ Typically characterized by a downward-sloping channel following a strong upward price movement, this pattern can signal further gains. If the trend holds, analysts predict the price may rally towards a target of $100. However, caution is warranted as the weekly relative strength index (RSI) indicates that the asset may be overbought, signaling a potential price retracement toward $34 before possibly surging again.