WAVES turned to the bullish side by sliding from ATH, but recently its upward trend can be an opportunity for new investment. This is showing the possibility of further increment. We will be watching the WAVES for few days and updating how it is performing.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Waves [WAVES] formed a break in market structure and took a turn toward the bullish side over the past week as the bulls managed to drive prices past a crucial resistance.
This move upward showed the possibility of further gains in the days to come. Can buyers hold their nerve and defend the $4.57-$4.7 support zone?
WAVES- 4-Hour Chart
In August, the trend had been strongly downward. On the way south, the price had found some support at $5.5 and $4.7. Therefore, based on the past month of price action, some important levels were clear for WAVES.
The first was the $4.7 zone, marked in cyan. It saw a bounce to $5.28 in August but gave way without much of a fight a week later. This marked the area as an important zone of supply and a bearish order block.
In September, WAVES tested this belt of resistance multiple times. The bulls were finally met with some success. The past week saw a huge surge northward, to the $5.26 mark. This was quite close to the $5.28 resistance from earlier.
At the time of writing, it looked likely that WAVES would continue to swell upward from the nearby support zone. To the north, $5.28 was an area that bulls can look to take profit at.
The 23.6% Fibonacci extension level (yellow) sat at $5.52 and had good confluence with a significant horizontal support level. The RSI was above neutral 50 and no divergences were present.
WAVES- 1-Hour Chart
The one-hour chart highlighted the pullback of the past few days. The On-Balance Volume (OBV) saw a decline in recent days, which suggested some selling pressure on the dip from $5.2.
The Bollinger Bands (blue) tightened on the price chart, which indicated a period of consolidation. The BB width indicator also appeared to take a dip in recent hours.
It has already been demonstrated that the $4.7 zone was a significant zone to watch out for. If the bulls can defend this area, a move upward could follow.
The price charts showed the possibility of a buying opportunity at $4.7, with a stop-loss nearby at $4.57. However, this plan of action would depend heavily on Bitcoin, and if the bulls can stay above the $22k mark.