RaveDAO Coin price surged by over 140% on Tuesday as investors bought the recent dip in a classic case of a dead-cat bounce. RAVE token was trading at $1.6630, up from the weekend low of $0.5688. Why RaveDAO Coin price is soaring RaveDAO is a relatively new crypto project that is aiming to disrupt the entertainment industry. According to its website , its approach is to build local festivals much like TED and TEDx. The website notes that these events have happened in Singapore, Dubai, and Bangkok. RaveDAO made headlines recently when it went parabolic, moving from below $0.5 to $29 within days and with no major catalyst. The price then suffered a harsh reversal as it plunged by over 95% within a day. Most analysts have pointed fingers to market manipulation by the team. In a statement, ZachXBT, a top online investigator, noted that he identified several suspicious addresses that were involved in this manipulation in several exchanges like Binance and Bitget. Therefore, the possible reason why the RAVE price has jumped in the past few days is that the manipulation is continuing. Another possible reason is that it is going through a dead-cat bounce, a situation where an asset in a freefall rebounds modestly as investors buy the dip. These investors see the asset as a bargain. In this case, market participants see a coin that was trading at $28 on Friday last week and is trading at $1.62 today and believe that it is a bargain. However, history shows that those rebounds are usually short-lived. A good example of this is Mantra, whose price plunged from $6.8 on April 9 last year to $0.38 on April 12. It attempted to rebound a few days later and then resumed the downward trend and is trading at $0.01 today. Another good example of this is MYX Finance, whose token surged to a high of $17.2 on October 2nd last year and then plunged to $1.2 a few days later. It then attempted to rebound and failed, and is today trading at $0.23. Chances are that the RaveDAO price will have a similar performance, as not many holders will be comfortable holding it for a long time after the recent crash. Wyckoff Theory explains the RAVE price crash RaveDAO price chart | Source: TradingView The Wyckoff Theory is a good explanation of the ongoing RAVE price crash. As the chart above shows, the token remained in a tight range for months before the recent surge. This consolidation was part of the accumulation phase of the Wyckoff Theory. It then moved to the markup phase earlier this month, which explains the recent surge. This surge moved it from a low of $0.19 to $28 within a few days. The token then moves to the distribution and markdown phases, which are characterized by intense selling among investors. Therefore, chances are that the best money has already been made, meaning that it will struggle to rebound. The post RaveDAO Coin price is soaring today: classic dead-cat bounce? appeared first on Invezz
