Waves Targets $5 After Breaking Out Above Resistance

Technical indicators and the wave count indicate that the price is likely to continue moving upwards.

Breakout From Long-Term Resistance

Throughout the majority of 2019 and 2020, the WAVES price consolidated near its all-time lows below $1. In July 2020, the price began an upward move that culminated with a high of $5.02 the next month. The move was very important since it caused a successful breakout from the $3.20 area, which had been acting as resistance for more than a year. In addition, this was the 0.618 Fib level of the entire previous downward move. The closest resistance area is found at $5, the previously mentioned August high, and then $8 after that if the price successfully breaks out.

End of the Correction

Technical indicators on the daily time-frame are bullish. The MACD has given a bullish reversal signal and has almost moved into positive territory. The stochastic RSI is setting itself up for a bullish cross and has almost moved outside of its oversold territory. The RSI has bounced at the 50 line and is moving upwards.

The shorter-term hourly chart is also bullish. The price has broken out from a descending resistance line on August 28 and has been moving upwards since. Technical indicators are bullish, suggesting that the upward move should continue. There is:

• Hidden bullish divergence on the RSI.
• A bullish cross on the stochastic RSI.
• A bullish reversal signal on the MACD.

These are signs that the price should move upwards towards the closest resistance area at $5.

Wave Count

Since the March 13 bottom, the price has likely begun a five-wave impulsive formation moving upwards (shown in black below). The third wave has become extended, counting five sub-waves (blue) and the third sub-wave has also become extended (orange). The price has currently completed the fourth sub-wave and has begun the fifth one, which should end near the previously mentioned $5 resistance area. A decrease below the sub-wave 4 low at $2.85 would invalidate this particular wave count.

WAVES/BTC

Cryptocurrency trader @TraderLenny outlined a WAVES/BTC chart, stating that the price has reclaimed an important resistance area, and that the price is likely to eventually move towards 70,000 satoshis.

The above-mentioned resistance area now turned support is found at 26,000 satoshis. Prior to the breakout, the price had not traded above it since May 2019. Technical indicators are bullish on the weekly time-frame, and the price is expected to continue moving upwards towards the next resistance area, which is found at 70,000 satoshis.