WAVES Has Reached an Important Resistance Area – Will It Break Out?

Waves (WAVES) Highlights

• There is resistance at 15,000 and 26,000 satoshis.
• The daily RSI has generated bearish divergence.
• The price is following an ascending resistance line.
• The price has possibly created a head and shoulders pattern.
• There is support at 10,000 satoshis.

Technical analyst @LomahCrypto tweeted a WAVES chart that shows that the price is at an important resistance level. If WAVES is successful in breaking out above this area, he believes that the price has the potential for a further 50% price increase.

$WAVES

If price can flip this weekly level, the next level of resistance gives us 50% runway pic.twitter.com/GyzFjyrix0

— Posty (@PostyXBT) February 21, 2020

Will the WAVES price be successful in breaking out above this resistance area? Continue reading below if you are interested in finding out.

WAVES Weekly

The weekly waves chart shows the two resistance areas outlined in the tweet, found at 15,000 and 26,00 satoshis, respectively.  The price is currently trading inside the first one. In addition, we can see that the weekly RSI has generated bullish divergence. The only time prior to this that it has done so, an upward move with a magnitude of 400% followed. If the same were to occur right now, the price would go all the way to 36,000 satoshis, way above the second resistance area. The RSI has already moved above 50, so if the price were to flip the resistance area, it would confirm that the price movement is bullish.

Possible Decrease

The daily chart reveals that the price has been following an ascending resistance line since December 17, 2019. The price has been unsuccessfully attempting to break out above this resistance line, most notably on February 15, when it created a long upper wick and a bearish shooting star candlestick prior to decreasing In addition, the daily RSI has generated strong bearish divergence and has completed a failure swing top. Therefore, this indicates that the price will not be successful in breaking out, rather it will decrease, at least in the short-term. This decrease is also supported by the short-term head and shoulders pattern that has developed. The price seems to be in the process of creating the right shoulder of this pattern. A breakdown from this pattern would take the price to the next support area which is found at 10,000 satoshis. To conclude, the WAVES price has reached a significant resistance area. Technical indicators and the creation of a bearish pattern suggest that the price will not breakout, rather will decrease towards the support area outlined above.