A big rally in WAVES price this week that saw it nearly double is at risk of reeling in the coming sessions due to a “death crossing” technical pattern.
WAVES Price Dropped 85% After ‘Death Crossing’ in 2018
A measure that a death cross appears when the long-term moving average of an asset closes above its short-term moving average.
In particular, on the weekly WAVES chart, its 50-week exponential moving average (50-week EMA; the red wave) jumped above its 20-week EMA (20-week EMA; the green wave) in the week ending February 21: a crossover bass guitarist.
That is the first “death crossing” occurrence of WAVES on a weekly chart since June 2018. In both cases, the correction in the WAVES market appeared due to the sell-off in the broader crypto market following a massive bull run.
As it happened, WAVES fell as much as 85% after the formation of the 2018 death cross, despite briefly closing above its 20 and 50-week EMAs on impressive but false bullish bounce moves.
Therefore, WAVES latest bullish pullback, although its best weekly performance since April 2018, still under long-term downside risks. As a result, a price drop below the 20 and 50 week EMA could mean another round of selling in the market.
That level of WAVES liquidation
In short, WAVES, the native token of a blockchain platform of the same name, is up as much as 88% week-to-date to hit over $21 apiece over the weekend.
As Cointelegraph previously covered, the migration to Waves 2.0, a partnership with interoperable blockchain service provider Allbridge, and an upcoming $150 million fund to fuel Waves’ growth in the US served as drivers of Waves’ bull run. WAVES.
But signs of a correction have emerged as WAVES fell nearly 10% from its local high near $21 on Saturday.
Interestingly, the turning point coincides with the 1.00 Fib line of the Fibonacci retracement chart made from the 21.60 high to 0.54 low, which served as key resistance during the January 2018, April 2021 and November 2021 corrections. , as shown in the graph below.
For example, in April 2021 and November 2021, The bulls attempted to flip $21.60 as support but failed. As a result, WAVES has spent more of its time below said 1.00 Fibonacci level than above it, which suggests an unstable bullish sentiment around it.
The Fibonacci fractal suggests that WAVES would see a retracement move towards its next line of supports near $17, $13.50 and $11. Conversely, a decisive move above $21.60 could see the bulls retest. levels above $34.50.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.