Waves Price Analysis: WAVES Stalls at New All-Time Highs; Could This be the End of the Tides?
- Investors rode the waves as WAVES soared to a record high at $42.
- The MACD reveals that overhead pressure could intensify in the near term.
Waves spiked roughly 280% less than a fortnight from price levels around $11 to historical highs of $42. The all-encompassing blockchain protocol has continued to receive immense attention from both investors and developers aiming to build decentralized solutions of tomorrow. As a blockchain solutions provider, Waves' growth appears to have a long-term trajectory.
Waves struggles with resuming the uptrend
The token teeters at $36 at the time of writing. Marginally on the upside, the token deals with acute resistance at $38. The Overhead pressure comes after Waves lost the ground above $40.
Sideways trading is taking root; however, this consolidation may not last longer based on the Moving Average Convergence Divergence (MACD) indicators' technical picture. Although the indicator is in the positive region, the MACD line (blue) could cross under the signal line anytime from now, insinuating the beginning of a downtrend.
WAVES/USD four-hour chart
The same four-hour chart illustrates an ascending parallel channel whose upper boundary limits price action. On the downside, the middle layer currently offers support. Note that closing the day below this level may trigger massive losses eyeing $30. If push comes to shove, Waves may retest the support provided by the 50 Simple Moving Average around $24.
The TD Sequential indicator has presented a sell signal on the daily chart. This call to sell manifested in a green nine candlestick. It suggests that the bullish momentum is starting to fade as overhead pressure rises.
WAVES/USD daily chart
Note that the TD Sequential indicator sell signal is validated when the high of bars six and seven in the count surpass the high of bars eight or nine. The daily chart confirms this formation; therefore, Waves' uptrend could be jeopardized.