The WAVES has broken below the long and short term support levels and is now approaching its 2021 lows.
Ripple has been declining since reaching an all-time high of $63.88 on March 28. The downside movement so far is the $6.01 low.
It risks breaking an ascending support line that has been in place for 679 days in particular since June 2020. It has come down below this for the time being but has not yet reached the weekly close. Breaking out of such a long-term structure usually means that the price is trapped in a deep correction.
economist and businessman @KrugerMacro Tweeted a chart of WAVES which shows a very sharp decline since the all-time high of $62. Measuring from those highs, the price has come down 90% so far.
failure to retrieve
The daily chart does nothing to detract from the bearish sentiment of the weekly chart. This is mainly because the price declined below the $12 horizontal support area.
Earlier, a divergence below this zone on February 2022 (red circle) was the catalyst for an all-time upward movement to an all-time high.
Therefore, its failure to provide support can now be seen as a sign that the trend is definitely bearish.
Moreover, while the RSI is oversold, there is no bullish divergence.
short term wave movement
Finally, the two-hour chart shows that WAVES has been declining at an accelerated rate since breaking out of a parallel channel on May 11 (red icon).
The decline has started slowing down and the RSI has now entered oversold territory.
If there is a rally, the $9.40 area would be expected to provide strong resistance. This is both the 0.382 Fibonacci retracement resistance level and coincides with the support line of the previous descending parallel channel.
Due to the confluence of these factors, it is expected to provide strong resistance.
be for[in]latest of crypto Bitcoin (BTC) Analysis, Click Here