Waves (WAVES) retreats after skyrocketing over the last week

As most coins struggled this week to put up any decent upward momentum, WAVES was quite literally making waves. The coin, in fact, saw staggering gains of about 100% after the new Binance announcement. But so far, WAVES has somewhat retreated. Here is what we know thus far:

• Binance announced that it would start accepting WAVES as collateral on its loans.

• The coin surged nearly 100% to hit highs of around $20.5.

• WAVES has since retreated slightly and is now trading at around $18.

Data Source: Tradingview 

WAVES Price action and analysis

The Binance news was quite frankly a big one, and it showed in the pricing. Even as the broader crypto market slowed in performance, WAVES reported staggering gains. However, we have seen the price retreat from $20.5 to $18. We expect this to continue before WAVES stabilizes around the $15 mark.

But there are some risks to keep in mind. The rally this week has put WAVES on a risky death cross. This is when the long-term moving average of a crypto coin goes above the short-term average. The death cross creates a high risk of a significant pullback in the price. 

In fact, the last time WAVES entered a death cross was in 2018, and the coin crashed by nearly 85%. Now, we are not saying this will happen. But a more significant pullback on the coin will come, no doubt.

Is WAVES good for long-term investing?

The answer is yes. WAVES is associated with the Waves Protocol, a decentralized open-source platform designed for the creation and deployment of scalable apps. 

The project has raised a lot of money from investors and is making very serious moves on the metaverse. All these things will go a long way in delivering value for the long-term holders of this asset.