Technical Analysis: Waves (WAVES) Price Prediction

Technical Analysis: Waves (WAVES) Price Prediction

Created 10mo ago, last updated 10mo ago

The trend is your friend - let's check out if you should fill your bags with WAVES!

Technical Analysis: Waves (WAVES) Price Prediction

Table of Contents

Waves (WAVES), initially was set out to improve the first blockchain platforms by increasing speed and user-friendliness. The WAVES token has an uncapped supply. Initially, WAVES was set out to appeal to business clients looking to incorporate blockchain technology and improve current processes. The WAVES platform supports the smart contract and dApp development.
WAVES has introduced other products like Gravity which is a cross-chain, oracle network, and decentralized finance platform. It wasn't until 2020 when WAVES became interoperable with Ethereum. The ecosystem uses a modified proof-of-stake mechanism ensuring scalability and speed. WAVES has been on the market for years and is widely available on many exchanges.
In this technical analysis, we will use multiple technical indicators to observe WAVES price in multiple time frames.

At the time of this writing, WAVES is ranked as the 45th largest cryptocurrency, according to CoinMarketCap. The market cap is sitting around $2.9 billion.

WAVES claims to be a community-based open-source technology that can benefit finance, identification, gaming, and sensitive data sectors. But what does the WAVES token have for us in 2022? Let's take a look at the charts!

WAVES/USDT on a Monthly Chart

Using the logarithmic chart we get a clear long-term picture.

Looking at the monthly time frame, we can see the trend is in favor of the bulls. WAVES is now testing resistance, with the potential for a breakout.

When you look at the left side of the chart, you can see WAVES has been in a strong uptrend since the beginning of 2020. Higher highs and higher lows until May 2021 have been formed where WAVES saw an incredible 7,534% increase!

Since May, the token has been in a minor correction until finding support last month. The bulls have regained control now.

When looking at previous higher lows, you can see reversals were confirmed with two candles. History doesn't always repeat itself but it does often rhyme. The bulls need to close above this resistance level to confirm another leg to the upside. A look at the lower time frames can give us a better view.

Let's take a closer look!

WAVES/USDT on a Weekly Chart

Sticking with our logarithmic chart, and now looking at the pattern time frame. You can see that the price is approaching resistance.

The last time the price was at this level, we formed a local top and the price began its sell-off. Expect the price action to do a little consolidation at this level before making its next move.

Let's take a look at a couple more details!

At the left side of the chart, you can see there were two instances when WAVES was at this level. The first time price approached this level, there was an immediate sell-off from $30 to $12. The second time the price approached this level, there was minor consolidation before we saw the price make a reaction. There was a double test of resistance before we saw a sell-off. This is now the third approach and WAVES is coming in hot! Even though there is no confirmation of the next direction, we do see some early signs of bull regaining control. The bulls need to close above resistance to confirm the next leg up.
A rejection from this level will make the price revisit the area of interest. However, a close above the resistance level will take the price to a new all-time high.

WAVES/USDT on a Daily Chart

Now we are shifting down to the daily time frame and using the logarithmic chart. This time frame gives us a better look at when to pull the trigger.

Here we get a better picture of price action testing resistance. A rejection from this level will lead to a sell-off towards $23. A close above the resistance will trigger the price to revisit $30.
Wait for confirmation of direction before pulling any triggers. For now, the bulls are in control. However, a rejection here can quickly turn things around.

WAVES/BTC on a Weekly Chart

Last but of course not least, comparing WAVES to BTC using the logarithmic chart. The price action has been in a long-term range.

The token’s price has recently broken out of a minor downtrend. Since then it has been on a moon mission breaking through minor resistances.

WAVES has been pretty stable against BTC, respecting its range for most of its time. It is now testing major resistance. A break and close above this resistance level will send WAVES to a new ATH. A rejection from this level will trigger a sell-off towards the previous breakout zone.

WAVES' accumulation will lead to a breakout.

Summarizing the Above

  • WAVES on the monthly timeframe shows that the trend is in favor of the bulls.
  • WAVES on the weekly timeframe shows that there is no confirmation of the next direction.
  • WAVES on the daily timeframe shows that the bulls are in control.
  • WAVES on the BTC weekly timeframe shows that a break and close above resistance will send the price to a new ATH.

Remember that this is all based on the subjective views of the writer. As always do your own research.

New to trading? Check our guide on how to find support and resistance level to learn the basics!

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