RaveDAO (RAVE) is down another 12% over the past day as of press time. The broader outlook doesn’t offer much to fall back on, and with spot demand almost completely absent, both on the chart and in order books, the price could fall further from its current level.
RAVE bulls pull back as conviction fades
Recent chart data indicates a weakening of conviction among investors who once viewed RAVE as bullish.
At the time of writing, the Bull Bear Power (BBP) indicator, which gauges whether bulls or bears are dominating the market, showed that the bulls were in control, although their grip has loosened significantly.
The histogram carries the same message, moving from dark green to a lower green, a sign that the bulls are gradually pulling back and unwinding their RAVE positions. RAVE’s Accumulation/Distribution (A/D) indicator provided the most accurate reading of the sell-off, with selling dominating trading over the past 24 hours as the A/D line declined.
If BBP continues to fall and eventually turns negative while A/D continues to fall, the price would find itself in an increasingly precarious position.
Whales are behind the sale
The selloff carries added weight because the data points to whales as the driving force, and they appear poised to dump even more of the asset.
At the time of writing, the retail whale delta, a metric for determining which cohort is buying or selling, shows whales in the lead, with the value climbing to 0.272.
In the case of RAVE, this influence is hard to ignore, with data from CoinMarketCap showing that this cohort controls the majority of supply on all three chains where the token is traded.
On BSC, the top ten wallets hold 93.03% of the supply, while the figures stand at 87.38% on Base and 97.42% on Ethereum. Concentration on this scale means that whale activity during times like this often overshadows the positioning of retail investors.
RAVE spot demand weakens
Spot demand for RAVE fell over the past day, reversing purchases that had supported the asset earlier in the week.
At press time, the net flow plunged to around -$269,000 over the past day. A decline like this does no favors, especially when overall market sentiment remains sluggish.
However, further decline would reinforce the bearish outlook already present in the market and push RAVE lower on the chart.
Final summary
- RAVE lost another 12% over the past day as whale wallets led to intensified selling.
- Weakening spot demand and slowing BBP and A/D readings have exposed the price to further decline if selling pressure continues.
