Latest Waves (WAVES) Price Analysis

TLDR
Waves rose 1.71% in the past 24h, extending a 23% 30-day rally. The move aligns with broader altcoin strength (Altcoin Season Index +20.93% monthly) but outperforms the crypto market’s 0.32% 24h gain. Key drivers:

1. AI Product Adoption – New DeFi tools (July 2025 launch) driving developer activity
2. Funding Milestone – $10M raised for Waves’ L2 Units Network (19 June 2025)
3. Technical Breakout – Price cleared $1.30 resistance, now testing Fibonacci extension targets

Deep Dive

1. AI Tool Adoption (Bullish Impact)

Overview: Waves launched an AI Launchpad and Liquidity Manager in July 2025, automating DeFi strategy creation and liquidity optimization. These tools contributed to a 43% YTD increase in stablecoin activity on the chain.

What this means:
– Reduces barriers for developers, potentially increasing protocol launches
– Improved capital efficiency could attract more TVL (Total Value Locked), with stablecoin supply on Waves hitting $1.29B in August
– Recent community campaign (19 Aug–5 Sept) amplifies visibility

2. Units Network Funding (Bullish Impact)

Overview: Waves’ EVM-compatible L2 secured $10M from Nimbus Capital (manages $1.2B), announced 19 June 2025.

What this means:
– Validates ecosystem’s roadmap for cross-chain interoperability
– Funds allocated to AI infrastructure could accelerate developer tools
– Historical pattern: Previous Waves funding rounds (2021’s $50M WX IDO) preceded multi-month rallies

3. Technical Momentum (Mixed Impact)

Overview: Price broke $1.30 resistance (now support) on 18 August, aligning with 200-day MA ($1.22). RSI(7) at 66.43 shows momentum but isn’t overbought yet.

What this means:
– Next target: $1.56 (127.2% Fibonacci extension)
– Risk: Turnover ratio of 0.36 suggests moderate liquidity – sharp moves could reverse if volume fades
– Derivatives open interest dropped 4.12% in 24h (per CoinJournal), indicating spot-driven demand

Conclusion

Waves’ rally combines fundamental upgrades with technical momentum, though its uncapped supply ($118.6M circulating) requires sustained demand to maintain gains. Key watch: Can WAVES hold above the $1.30 support level through the “Waves Up in Space” campaign’s conclusion on 5 September? Monitor Q3 2025 adoption metrics for AI tools for confirmation of long-term viability.

TLDR Waves (WAVES) fell 5% in the past 24 hours despite a 25% weekly rally. Key factors include profit-taking after breaking $1.30 resistance, mixed technical signals, and broader market softness.

1. Profit-Taking at Resistance – Price retraced after testing $1.39 (23.6% Fibonacci level).
2. Altcoin Market Weakness – Crypto fear/greed index fell to "Neutral," with altcoins underperforming Bitcoin.
3. Spot-Driven Rally Fatigue – Derivatives volume dropped 4.12%, signaling reduced leverage.

Deep Dive

1. Technical Correction at Key Resistance (Bearish Short-Term)

Overview: WAVES broke above the critical $1.30 resistance on August 18, aligning with its 200-day moving average ($1.22). However, it stalled at the 23.6% Fibonacci retracement level ($1.39), triggering profit-taking.

What this means: The 24-hour drop reflects a natural pullback after a 25% weekly surge. The RSI (63.29 on 7-day) shows momentum cooling but not oversold. A close below $1.30 could signal deeper correction toward $1.18 (38.2% Fib).

What to watch: Sustained holding above $1.30 or a break above $1.56 (127.2% Fib extension) to confirm bullish continuation.

2. Broader Altcoin Weakness (Mixed Impact)

Overview: The crypto fear/greed index fell to 46 (Neutral) on August 22, down from 50 the previous day. Total crypto market cap dipped 1.76%, with altcoin dominance slipping slightly.

What this means: WAVES’ drop aligns with reduced risk appetite for smaller-cap tokens. However, the Altcoin Season Index rose 4.76% in 24 hours, suggesting selective capital rotation persists.

3. Spot Market Dominance vs. Derivatives Drop (Neutral)

Overview: WAVES’ rally was driven by spot buying (evidenced by 25% weekly gains), but derivatives open interest fell 4.12% in 24 hours.

What this means: The lack of leveraged positions leaves the rally vulnerable to quick profit-taking. However, spot-driven moves are often more sustainable than futures-fueled pumps.

Conclusion

WAVES’ 24-hour dip appears corrective after a strong technical breakout, compounded by cautious altcoin sentiment. Traders are balancing optimism around Waves’ AI tool adoption (launched in July 2025) against short-term resistance and macro headwinds.

Key watch: Can WAVES hold $1.30 support amid the ongoing "Waves Up in Space" community campaign (through Sept 5)? A breakdown could test $1.18, while holding may reignite upward momentum.