Waves Cryptocurrency Bounced, But Failed to Break Through Resistance

Altcoin Waves (WAVES) has been growing since September, but the rally has stalled after a recent meeting with an important resistance level

The most likely scenario is a decline in the direction of the support levels described below.

Failed rebound

WAVES has been rising since September 21, when it reached a low of $2.07. On October 23, the price reached a high of $3.61.

This maximum is located directly at the level of the 0.5% Fibonacci retracement relative to the previous decline, which acted as a resistance. Since the collision with this level, the quotes have been declining, falling below the $3.15 level, which turned into resistance.

Despite the bearish dynamics, technical indicators do not give outright negative signals. The MACD is declining, but the stochastic oscillator continues to rise, and the RSI is above the 50 level.

WAVES chart from TradingView

Short-term resistance

In the short term, the price has been following the downward resistance line since reaching the aforementioned high on September 23. Altcoin has confirmed the status of this line three times already and at the time of writing the analysis was close to its next test. This line also coincides with the 0.382% Fibonacci retracement level relative to the bearish move, which gives it additional significance.

In the case of a decline, the nearest support is expected at the levels of $2.83 and $2.65, where the levels of 0.5% and 0.618% of the Fibonacci correction are held relative to the previous bullish move.

WAVES chart from TradingView

The move away from the highs is like a completed impulsive bearish move, followed by an A-B-C correction. This suggests a rebound from the downward resistance line and a continuation of the decline in the short term.

WAVES chart from TradingView

Couple Waves/BTC

Cryptocurrency Trader @CryptoCapo he shared the Waves chart on Twitter, pointing to the support level of 23,000 satoshi, the loss of which can trigger a sharp acceleration of the fall. If the support holds, we can expect a long rise.

Source: Twitter

At the same time, the weekly chart shows that the price is slightly below the important support located at the level of 25,000 satoshi, which in 2018 served as a catalyst for an impressive rise.

Initially, the price broke above this level, but soon rebounded, resulting in a long upper wick forming on the charts.

If the decline continues, the pair may meet the nearest support level at 16,000 satoshi, which coincides with the line of upward support from the lows of December 2019.

In the case of an upward breakout, significant resistance levels are not expected until the 70,000 satoshi mark, although at this stage, the implementation of such a scenario is unlikely.

WAVES chart from TradingView

So, the prospects for the WAVES/USD and WAVES/BTC pairs look relatively negative, especially in the second case.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

Disclaimer


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