WAVES Could Go Higher, Even After Doubling in Value

There is the possibility of a short-term retracement prior to the resumption of the upward move.

Waves Doubles in Value

The Waves price had been consolidating for an entire year during the period between July 2019-2020. After gradually moving upwards, the price finally created a massive bullish engulfing candlestick during the week of Aug 10-17 and increased by 130%. Indicators are bullish. The increase transpired with significant volume, and the MACD is moving upwards. While the RSI is inside the overbought territory, it has not generated any bearish divergence yet. If the price continues moving upwards, the next resistance areas are found between the 0.5-0.618 fib levels of the entire previous decrease that began in December 2018.

Cryptocurrency trader @Kaisercrypto outlined a WAVES chart, which shows a symmetrical triangle. Kaiser believes the price will break out but did not give a target for the next movement. As we saw in the section above, the long-term targets are found by using the Fib retracement tool, falling between 64,000-70,000 satoshis.

Short-Term Trend Shows Weakness

On the other hand, lower time-frames reveal that the trend has begun to show weakness. There is a bearish divergence in the RSI and MACD. The MACD has almost turned negative. Furthermore, the volume has been decreasing even though the price is making higher-highs, a sign that a reversal is likely near. If the price begins to decrease, the closest support area would be found at 26,000 satoshis. Afterward, the price is expected to continue moving towards the long-term targets outlined previously.

To conclude, while the Waves price has likely begun an upward move and will continue increasing, a short-term retracement could transpire before the price resumes its upward movement.