Waves Price Analysis: WAVES Price Hints Pullback To $41.8 Support

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The WAVES/USDT pair has been one of the top gainers of march 2022, registering a 230% gain since the beginning of the month. This exponential growth was backed by a series of positive news such as:

The launch of a U.S-based venture, ‘Waves labs.’
An announcement about the migration to Waves 2.0.
Its partnership with Allbridge.

Key points: 

The bullish rally triggers a golden crossover between the 50-and-200 DMA
The intraday trading volume in the WAVES is $1.85 Million, indicating a 59% loss

Source- Tradingview

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From mid-October 2021 to early February 2022, the WAVES price experienced a one-sided downfall2 which plunged the altcoin to the $8 mark. On February 7th, the coin breached the downtrend carrying resistance trendline, providing an early sign for reversal.

After its third retest to $8 support, the WAVES price rebounded and gave a bullish breakout from the $14.5 local resistance. The post-retest rally triggered a massive pump and drove altcoin high in the price chart. 

The bull run sliced through some crucial resistance levels such as $22.5, $33.8, and the All-Time High resistance of $41.85. The buyers pushed the WAVES price to its new All-Time High at the $60 mark, which indicates a 270% gain from the beginning of the month.

However, on March 30th, the daily candle showed a long-tail rejection from the $60 mark, indicating the sellers are rejecting at a higher price. Today(March 31st), the altcoin is down by 4%, suggesting a possible retracement before the next leg-up.

The expected pullback could obtain support from the $44.85 or $33.8.

Technical indicator

The daily-RSI indicator slope spikes into the overbought region, bolstering a minor correction.

The important DMAs (20, 50, 100, and 200) are left behind by the fast-moving price. However, the coin price cannot stay far from its average for too long, and therefore a pullback is needed to maintain a healthy rally. 

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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