Despite the slight rejection, WAVES should regain its footing and increase towards at least $16.
The weekly chart shows that WAVES increased considerably over the past week, a move that accelerated once it broke out above the previous resistance area at $8.20.
So far, it has nearly reached the 0.618 Fib retracement of the entire downward movement measuring from the all-time high price of $23.34, which falls at $14.43.
If WAVES were to break out above this resistance area, the next resistance would be at $18.35 and $23.34, respectively. While the RSI has formed bearish divergence, it is still above 70, and both the MACD and the Stochastic Oscillator are bullish, supporting the possibility of a breakout.
Cryptocurrency trader @TheCryptoDog outlined a WAVES chart, stating that price discovery will occur soon. While it has stalled at the $14.4 resistance area outlined above, it is likely to reach a new all-time high price once it moves above.
The daily chart supports the continuation of the upward movement. WAVES has retested the previous breakout level, left behind a long lower wick, and is in the process of moving upwards again.
Since then, it has reached a high of $14.20, doing so on Feb. 18. The MACD, RSI, and Stochastic oscillator are all increasing, supporting the continuation of the upward movement.
The two-hour chart shows a minor resistance area at $12.80, where WAVES has supposedly created a double top pattern.
Nevertheless, both the MACD and the RSI align with the long-term readings, supporting the possibility of a breakout.
The wave count suggests that WAVES is in an extended wave three (white), which began on Jan. 2021.
The two most likely targets for the top of the move are at $15 and $18.50-$18.70. Since the latter area is formed by a confluence of two Fib levels, it’s more likely to act as the top.
The sub-wave count is given in orange, indicating that WAVES is in the fifth and final sub-wave.
The WAVES/BTC price shows a struggle to move above the 2,690 satoshi resistance area, which is also the 0.382 Fib retracement level of the entire downward move.
If it moves above it successfully, the next resistance area would be at 3,525 satoshis. Technical indicators support the possibility of a breakout. Nevertheless, until it moves above this level, we cannot consider the trend bullish.
To conclude, WAVES/USD should rally towards $16 and possibly higher. WAVES/BTC is likely to break out from the 2,690 satoshi resistance area.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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