Connect with us

Altcoins

WAVES makes a big splash, but here’s why volumes could be key

Published

on

Source: Pixabay


WAVES saw some ripples in its price action over the weekend after re-testing support near the $4.20-price level. Those ripples eventually turned into a strong bullish wave, one propelling the altcoin into the list of top gainers for this week.

WAVES hovered just above its current structural support around $4.20 during the weekend after last week’s bearish performance. This is the same level where the price found support towards the end of May. While WAVES noted some upside over the weekend, the bulls demonstrated their strength on Tuesday.

WAVES soared as high as $7.20 on Tuesday after a 43% rally. It peaked at $7.28 on Wednesday morning, before seeing a slight pullback to its press time price of $6.58. Its weekly performance was still up by 49%, despite the slight decline.

Source: TradingView

The uptick was fueled by strong demand highlighted by the MFI. The slight pullback near its latest highs took place after the price encountered some friction near its 50% RSI level.

However, there is more to WAVES’ latest performance than demand near the support line.

NFT volumes may have been behind WAVES’ rally

WAVES’ uptick happened at around the same time that its network registered a strong increase in NFT trade volumes. Total NFT trade volume increased from $663k on 17 June to peaking at $8.07 million on 19 June. Now, while it fell to $1.46 million by 21 June, this NFT activity preceded the alt’s latest rally. In fact, this may have been the catalyst that triggered the strong price uptick.

Source: Santiment

The supply held by whales does not reflect the crypto’s price action, however. It did, on the contrary, signify some accumulation courtesy of its uptick on 17 June. It has since registered outflows though.

On-chain volume increased significantly on 21 June, coinciding with its strong rally on the same day.

Conclusion

The supply held by whales metric also underscores the lack of strong buying pressure this week. WAVES might thus fail to maintain its latest rally due to these reasons, coupled with the unfavourable market sentiment.

However, its bullish performance this week is a sign that it is starting to see healthy volumes. Especially after a lackluster performance in the second half of May.

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.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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.