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Vikram
Feb 17, 2022
by Vikram

WAVES Technical Analysis: Short-term Reversal Hopes To Turn The Tables 

WAVES
WAVES coin price challenge the short-term resistance trendline with the recent rise in the inverted flag pattern. Will the uptrend surpass the 50-day EMA?

The WAVES coin price sustains above the $8.3 mark after a more than 75% decline since October 2021. However, the recent growth challenging the short-term resistance trendline projects the possibility of a trend reversal. Will the support from the $8.3 help the bulls surpass $11?

Key technical points:

  • The coin price sustains above the $10 mark.

  • The RSI indicator’s slope rises above the 50% mark. 

  • The 24-hour trading volume in the WAVES token is $236 Million, indicating a 7.5% fall. 

    • Past Performance of WAVES

    With the death cross in the WAVES/USD chart, the coin price has depreciated by 20% in the last month, with the 50-day EMA acting as a resistance barrier. The downtrend halts near the $8.3 mark and consolidates for a while before challenging the resistance trendline. 

    However, the upside retracement rides within an inverted flag that has proven to be a bearish continuation pattern in most cases. Nonetheless, the trendline breakout has the potential of a trend reversal.

    Currently, the WAVES coin price trades at 10.90, with a price jump of 3.29% in the last 24 hours as the bulls finds a haven at $8.3. However, the loss in trading volume questions the bullish commitment.

    TradingView Chart

    WAVES Technical Analysis 

    The WAVES coin price can showcase a post-breakout rally of almost 50%, considering the prices sustain above the 50-day EMA. Moreover, the higher rice rejection of the long-wick formation increases doubts about the trendline breakout.

    The RSI Indicator shows the slope rising above the 50% mark with the 14-day average following the uptrend. This indicates the underlying sentiment is slowly turning bullish. 

    After the recent death cross, the 50-day EMA provides constant dynamic resistance to every bullish attempt and helps maintain the downtrend. However, the recent reversal projects the possibility of a breakout that may reach the 200-day EMA.

    The Stochastic RSI indicator projects a reversal in the K and D lines with the early onset of the bull cycle evident by the crossover in the neutral territory. Therefore, the indicator keeps a bullish view of the WAVES token.

    In conclusion, the technical indicators project the possibility of a breakout despite the higher side rejection evident by the price action. 

    Upcoming Trend

    The WAVES coin price action resonates higher within the inverted flag and tests the short-term resistance trendline. However, as mentioned above, the technical indicators and the price action project different forecasts. Therefore, traders hoping for a bullish breakout must wait for the price action confirmation.

    Support Levels:$8.30 and $7

    Resistance Levels: $13.75 and $18

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    WAVES Technical Analysis: Short-term Reversal Hopes To Turn The Tables 
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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