The Waves price is trading inside a symmetrical triangle, a breakout from which could take it to 15,500 satoshis.On December 10, the Waves price made a bottom of 7185 satoshis. It began an upward move and doubled its value until December 17. While the price has been decreasing since, it has been engulfed inside a bullish continuation pattern. Cryptocurrency analyst and trader Pierre (@pierre_crypt0) stated that he re-entered his Waves trade, whose price is in the process of consolidating. After this is finished, he expects a move towards 1530 satoshis.
Will Waves reach the outlined target? If not, will it break down? Keep reading below if you want to find out the answers.
$WAVES #Waves— Pierre (@pierre_crypt0) December 27, 2019
Back in waves after the +35% we took a few days/weeks ago.
Been consolidating below 200dma for too long, expecting a pop up to at least 1,530 sats if(!) $BTC allows it. pic.twitter.com/oodxkgrLFM
Long-Term ReversalBesides a relatively short period of time in March 2017, the Waves price has been trading above the 25,000 satoshi support area since its launch. However, in July 2019, the price broke down below this support area. Afterward, it continued to decrease and made several all-time lows. In the period from July to December of the same year, the weekly RSI continuously generated bullish divergence. In such a high time-frame, this often indicates a reversal and the beginning of a new market cycle, especially when combined with the bullish cross that transpired in the MACD. Let’s take a look at a different time-frame in order to determine how this upward move might play out.
Waves Current Upward MoveThe daily outlook reveals that the price has broken out above the previous 11,500 satoshi resistance area and validated it as support afterward. Additionally, the price has moved above both the 100- and 200-day moving averages (MA), albeit barely doing so for the latter. However, the 100-day MA is trending upward, indicating that this might be the beginning of a new long-term upward move. In the short-term, the price has clearly created a symmetrical triangle. Since it is occurring after an upward move, it is likely to act as a continuation pattern, meaning a breakout could follow at the end of the pattern. If the price breaks out and travels the entire height of the pattern, it could increase until it reaches the 15,500 satoshis target.
Future MovementInterestingly, the closest resistance area is found at 15,500 satoshis followed by the next one at 18,00 satoshis. If the price breaks out, it could reach at least one of them before retracing. A breakdown below the wick low of 10,800 satoshis would invalidate this possibility, making this a prudent price level to place a stop-loss. To conclude, the Waves price has likely created a continuation pattern after initiating a strong upward move. We believe the price is likely to break out, with the closest target for the possible breakout being at 15,500 satoshis.
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