Connect with us

Analysis

HODL or sell? Can WAVES hold on to these two levels for a next leg upwards

Published

on

Waves pulled back once more on its explosive rally, watch out for these levels
Source: Pixabay

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Waves continued higher on its wild rally of the past month. It reached a local high at $31 before pulling back to trade at $26.2 at press time. The announcement of the migration of Waves to Waves 2.0 might have sparked investors’ interest. Buying pressure remained high, and $37 could be the next target if $31.2 is broken. This goes against the near-term bearish mood in the rest of the crypto sphere. And, the most pertinent question here is- Can WAVES continue to swim against the tide?

WAVES- 1H

Waves pulled back once more on its explosive rally, watch out for these levels

Source: WAVES/USDT on TradingView

The local highs at $21.1 had been retested as support a few days ago before WAVES pushed higher to $24 and $31. In a similar manner, the $26.2 level, as well as the $24 area, could see demand arrive.

Short-term investors would be interested in seeing if WAVES can hold on to these two levels. A set of Fibonacci retracement and extension levels (yellow) were plotted from $11.02 and $21.1, and they gave extension levels at $23.84, $27.33, $31.18, and $37.41 further north.

A session close below the $24 area (cyan box) could see a deeper retracement. A move past $28 could usher in the next leg upwards.

Rationale

Waves pulled back once more on its explosive rally, watch out for these levels

Source: WAVES/USDT on TradingView

The previous day saw the RSI and the price develop a bearish divergence (white) and saw a pull back from the $31 mark. At the time of writing, it stood at 43.22. A hidden bullish divergence (higher lows for the price, lower lows on the RSI) could propel the price upward once again.

The MACD formed a bearish crossover and also fell beneath the zero line. The CMF was at +0.06. And, once more signaled strong buying pressure.

Conclusion

Bitcoin and the rest of the altcoin market were quite volatile but Waves has known only upside in the past two weeks. This could continue and see the asset trade at $37 soon. On the other hand, a drop below $24 could see the price retrace further.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.