The month of September for WAVES didn’t look good as the coin registered a sharp downward pattern. The market is looking bearish as WAVES slipped below the key $4.6 level.
Crypto market looking bearish for WAVES
WAVES key support retests the $4.3 zone
OBV shows a weakening in selling volume
Bitcoin, the king of crypto, climbed to $19.8K, forcing the retreat of the bears and allowing the bulls to recharge.
In the event that Bitcoin nosedives lower than $19K, this could inevitably pull the other cryptocurrencies down with it.
On the other hand, WAVES has shown some improvement as it dashes above the $4 zone in the last two days.
Waves is a multi-purpose blockchain platform which supports different types of use cases including decentralized applications and smart contracts.
The blockchain platform’s native token is WAVES, an uncapped supply coin used for payments such as block rewards.
$4.3 Revisited As Key Resistance Zone
Based on the 4-hour chart, WAVES was able to recover and jump to the $4.3 level following its recent correction.
In the next days, WAVES price is seen to bounce back in the $4.5-$4.6 range. A couple of days ago, the key support found at $4.3 have been revisited as a key resistance zone.
Earlier, its price has once again dropped below the $4 range. On the 1-hour chart, it retreated once again or back to the $4.3 level following its latest setback.
The price on the higher timeframes is seen to be massively bearish than bullish. Additionally, the market is now leaning toward the sellers as noted in the past few weeks.
WAVES was aiming to hit the $4.3 mark a few days ago but was barred and pushed towards the $3.9 mark instead.
With that being said, going long in the $4.02 support level wouldn’t be a wise move, especially with the risks involved.
With the token unable to clutch strongly on the $4 zone, this led to the bears gaining enough traction to dominate. Additionally, a selling opportunity is predicted to occur once a retest is done on the $4 mark.
WAVES RSI Falls Below 50
According to CoinMarketCap, WAVES price is up by 2.53% or trading at $4.01 as of press time.
The Fibonacci retracement levels at the $4.0 and $4.09 range can hinder the buyers’ intent to press on the gas in terms of prices.
The token’s relative strength index is seen to have traversed below 50 further strengthening the validation of bearish momentum.
Also, the CMF is seen to have dropped beneath the -0.06 level showing the rapid loss of capital. In terms of On Balance Volume, the token seems to signify weakened selling as seen in the past few days. More so, the OBV also shows that there is no indication of a sharp pullback.
The price is seen to have plunged below the $4 mark. It was seen to pause at the $3.94 level which means a retest at the $4 mark could tick off a selling opportunity.
Crypto total market cap at $902 billion on the daily chart | Source: TradingView.com
Featured image from The Coin Republic, Chart: TradingView.com
(The analysis represents the author’s personal views and should not be construed as investment advice).