WAVES Technical Analysis: Pattern Breakout Brings Bullish Reversal
Waves is an all-purpose blockchain platform that can be used for a variety of purposes, including apps that are decentralized (DApps) and smart contracts.
The first DEX aggregator Puzzle Swap launches on Waves blockchain, causing investors to purchase Waves. This launch is a thrilling possibility to the community, given it is known that DEX aggregators are extremely sought-after as the adoption of crypto continues to grow. This suggests an increasing demand for the service, making the present a good opportunity to invest in the token.
Let us move ahead to read about Waves technical analysis.
Past Performance of WAVES
WAVES coin price forms a double bottom pattern near the $8 mark after the downfall of almost 75% in the past four months. The correction phase started with the rejection near the $36 mark. However, the recent double bottom breakout brings a recovery of 50% from $8 resulting in a potential trend reversal.
WAVES Technical Analysis
The WAVES coin price breaks above the neckline of a double bottom at $10.5 and continues to approach the $12.5 mark. However, the price struggles to rise above the $12.5 mark as the sellers attempt to undermine the bullish recovery.
The crucial Exponential Moving Averages (50,100, and 200) show a bearish alignment in the daily chart with the 50-day average providing dynamic resistance. The breakout of this average can lead to a price jump to the 200-day average at $17.
The MACD indicator shows rising fast and slow lines after the bullish crossover in the negative territory. Moreover, the bullish trend in histograms showcases a rise in buying pressure.
The RSI indicator shows the slope crossing above the 50% mark into the nearly overbought zone after the bullish crossover with the 14-day SMA. Hence, the indicator showcases growth of bullish interest in the WAVES token.
In a nutshell, the technical indicator showcases an increase in the buying pressure which continues to fuel the uptrend.
Upcoming Trend
The WAVES coin price shows the double bottom breakout near $8 that marks the potential trend reversal. However, the 0.236 Fibonacci retracement level at $14.5 acts as the first line of bearish defense.
The crucial upcoming resistance levels are at $14.50 and $17 after the 50-day EMA. On the opposite end, the support levels are at $10 and $8.