WAVES has reclaimed an important horizontal level after forming a Bullish pattern combined with a Bullish Divergence.
WAVES has been declining along a descending resistance line since reaching an all-time high of $41.86 on May 4. The shortfall came down to a low of $7.56 on January 24.
The price has been on an uptrend since then, and has increased significantly on February 28. The upward movement reclaimed the $12.50 horizontal area, which had previously acted as support since May 2021. Since the area has now been reclaimed, it presents the previous January 2022 break-up as the only divergence.
The nearest resistance area is at $24.50. This is the 0.618 Fibonacci Retracement resistance level and coincides with the descending resistance line above.
future waves movement
cryptocurrency trader @CryptoCapo_ Tweeted a chart of WAVES, which suggests that the current upward move is corrective.
However, both the MACD and the RSI were up during the bottoms of February 4 and February 21 before a fairly sharp divergence. The movement also created what looks like a double bottom, which is considered a bullish pattern.
Besides, the RSI is now above 50 and the MACD is in a positive zone. Both of these are considered to be bullish signals.
The last time both these indicators gave the same reading was on August 2021. It reached a high of $34.90 in the process, before rising to a WAVES upward move of 112%.
short term movement
When measuring the initial rise on January 24, the increase that began on February 24 is 2.61 times the length of the original upward movement.
Therefore, it is possible that there will be a short-term rejection at this level.
This is further supported by a developing bearish divergence in the RSI. I
If there is a rejection, the nearest support will lie between $12.5 and $14, which is the area formed by the 0.5 – 0.618 Fibonacci retracement resistance level.
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