RaveDAO's RAVE token risks another 50% crash amid price manipulation claims

RavenDAO’s RAVE token mislaid implicit 98% of its worth implicit the weekend, and the hourly illustration present warns of different monolithic driblet successful the coming days.

Key takeaways:

• RAVE’s technicals puts the terms successful presumption for different 58% driblet successful April.

• Market manipulation claims are adding to the downside risks.

RAVE illustration hints astatine 50%-plus driblet next

On the hourly chart, RAVE continues to commercialized wrong a descending channel, with little highs and little lows forming betwixt 2 downward-sloping inclination lines.

As of Monday, the spot terms was retreating aft investigating the channel’s precocious boundary, a motion that sellers stay progressive connected rallies. If that rejection holds, RAVE could descent toward the channel’s little inclination enactment successful the adjacent term.

RAVE/USD hourly chart. TradingView

A Fibonacci hold drawn from the latest bounce astatine the little bound to the caller pullback from the precocious bound points to the 1.618 hold arsenic the adjacent bearish objective.

That level comes successful adjacent $0.30, implying a further 55%–58% diminution from existent prices successful April oregon by May.

Notably, the aforesaid setup correctly anticipated Sunday’s driblet toward $0.49, reinforcing the channel’s relevance.

RAVE/USD regular chart. Source: TradingView

Meanwhile, the 20-hour exponential moving mean astatine $0.96 and the 1.0 Fib enactment astatine $0.94 proceed to headdress upside attempts. Unless the bulls reclaim these levels decisively, the broader bias remains tilted to the downside.

Market manipulation claims adhd to RAVE risks

RAVE’s method weakness is unfolding alongside mounting allegations of marketplace manipulation, with marketplace watchers comparing it to the LUNA and WAVES pump-and-dumps from 2022.

Onchain researcher ZachXBT described the token’s explosive rally and consequent illness arsenic a “blatant” pump-and-dump, allegedly orchestrated crossed large exchanges including Binance, Bitget and Gate.io.

Source: ZachXBT

He flagged astir 23 cardinal RAVE tokens (worth astir $23 million) moving from a team-linked multisig wallet to Bitget deposit addresses soon earlier a 40% flash crash, and has since maintained a $25,000 bounty for whistleblowers.

RaveDAO has denied immoderate involvement.

Related: FOMO, lax rules are fueling the crypto transgression supercycle

Still, ZachXBT has doubled down connected his claims, arguing that implicit 90% of the token’s proviso whitethorn beryllium controlled by insiders, raising concerns astir liquidity attraction and terms control.

Source: X

A fewer days ago, RaveDAO revealed plans to merchantability portions of unlocked tokens to money operations, selling and hiring.

The squad said it is considering price- oregon performance-based fastener mechanisms to amended align incentives, adding that “building a question requires resources.”