RaveDAO (RAVE) fell another 12% the other day at the time of writing this article. The broader outlook offers little to fall back on, and the price could fall further from its current level due to the near-total absence of spot demand on the chart as well as the order books.
RAVE bulls retreat as their faith weakens
The latest chart data shows that belief is weakening among investors who once read RAVE as bullish.
At the time of this writing, the Bullish Bear Strength (BBP) indicator, which measures whether bulls or bears are dominating the market, showed that the bulls were in control but their control had loosened significantly.
The histogram carries the same message; shifts from dark green to a lower green reading; This is a sign that the bulls are slowly pulling back and unwinding their RAVE positions. RAVE’s Accumulation/Distribution (A/D) indicator provided the most accurate reading on sales; Selling has dominated the last 24 hours as the A/D line has fallen.
If BBP continues to fall and possibly turn negative while A/D continues to fall, the price could become increasingly unstable.
Whales increase sales
The sell-off is gaining more weight as data points to whales as the driving force, and whales appear poised to unload even more assets.
At the time of writing, whale retail delta, a metric tracking the group buys or sells, shows whales ahead, with the reading climbing to 0.272.
In the case of RAVE, this effect is difficult to ignore; CoinMarketCap data shows that this cohort controls the majority of the supply on the three chains where the token is traded.
In BSC, the top ten wallets hold 93.03% of the supply, while the figures stand at 87.38% in Base and 97.42% in Ethereum. Concentration on this scale means whale activity often dwarfs retail investor positioning during extensions like this.
RAVE spot demand weakens
RAVE’s spot demand fell over the past day, reversing the buying that supported the asset at the beginning of the week.
At the time of writing, its net flow has dropped to approximately $269,000 in the past day. This type of decline does no good, especially as overall market sentiment remains weak.
However, further declines will strengthen the bearish outlook already present in the market and push RAVE lower on the chart.
Final Summary
- RAVE lost another 12 percent in value in the past day as whale wallets caused intense sales.
- Weakening spot demand and softening BBP and A/D readings leave the price exposed to further declines if selling pressure continues.
