Does Waves Have Strength for Another Upward Move?

Long-Term Upward Move

The Waves price had been consolidating near the 10,000 satoshi level for almost a year, in the period between July 2019 – 2020. The price initiated an upward move that took place via a bullish engulfing candlestick during the week of August 10 – 17, on above-average volume. The price has been gradually decreasing since. However, WAVES has yet to even reach the 0.382 Fib level of the previous correction, which would likely be the first major resistance area. Technical indicators do not show any weakness yet. While the RSI is overbought, it has not formed bearish divergence. In addition, the MACD is still rising. This suggests that the upward move for WAVES has not yet ended.

In the shorter-term, we can see that the price has been decreasing since August 17, when it reached a high of 40,328 satoshis. The price is trading in a range between 32,400 and 26,400 satoshis. At the time of writing, it was trading very close the former. This level previously acted as support, but since the price broke down on August 21, it has turned to resistance. Technical indicators are neutral. The RSI is right at the 50 line, and while the MACD has crossed into positive territory, it’s losing strength. Unless the price manages to flip the 32,400 level, it should decrease towards 26,400. A breakdown from this level would likely take WAVES to 21,156, the 0.786 Fib level of the entire upward move.

Wave Count for Waves/USD

Cryptocurrency trader @TheEWguy stated that

$WAVES, got the retrace. But need to see it dip it further in blue lines. Will take another week for consolidation

The Waves price has likely begun a five-wave formation after the March 13 drop, currently being in wave 4 (shown below in black), which is occurring with an a-b-c- sub-wave formation (orange). The first support level in which the decline would end is at $2.47, the 0.618 Fib level, while the second one is at $1.84, the 0.786 Fib of the entire upward move. Afterward, the price should resume its upward movement.

To conclude, the WAVES price is expected to correct in the short-term before resuming its upward movement.