The Trend is Your Friend: Should You Consider Investing in WAVES?
Waves (WAVES) emerged with the ambition to enhance early blockchain platforms by boosting speed and user accessibility. This cryptocurrency is distinguished by its uncapped supply and aims primarily to attract business clients eager to integrate blockchain technology to optimize existing operations. The WAVES platform is versatile, supporting smart contracts and decentralized application (dApp) development.
Moreover, WAVES has expanded its ecosystem with products like Gravity, a cross-chain oracle network and decentralized finance platform. Notably, in 2020, WAVES achieved interoperability with Ethereum, broadening its utility and appeal. Utilizing a modified proof-of-stake mechanism, WAVES ensures scalability and speed, making it a reliable option for developers and investors.
Technical Analysis: WAVES in 2022
As of this writing, WAVES is ranked the 45th largest cryptocurrency, boasting a market capitalization of approximately $2.9 billion according to CoinMarketCap. WAVES positions itself as a community-driven open-source technology, with potential applications spanning finance, identification, gaming, and sensitive data management sectors. But what does 2022 hold for WAVES? Let’s delve into the charts!
By examining the logarithmic chart, we gain a comprehensive long-term perspective. On the monthly timeframe, the bullish trend is evident. WAVES is currently testing resistance, presenting a potential breakout opportunity. Historical data reveals that since early 2020, WAVES has been in a strong uptrend, achieving an astounding 7,534% increase until May 2021. Following this, the token underwent a minor correction, discovering support last month, allowing bulls to regain control.
Looking at prior higher lows, reversals often confirmed with two candles indicate a potential pattern. However, while history may not repeat itself, it often rhymes. A closure above the current resistance level is crucial for confirming another upward movement. Observing lower timeframes can provide further clarity.
Analyzing Lower Timeframes
Continuing with the logarithmic chart, the pattern timeframe shows the price nearing resistance. In the past, reaching this level resulted in a local top and subsequent sell-off. Expect some consolidation at this point before the next significant price movement occurs. Historically, two notable instances occurred at this level: first, an immediate sell-off from $30 to $12, and second, minor consolidation followed by a reaction.
Currently, WAVES is making its third approach, and the momentum is strong. Although there is no definite indication of the next direction, early signs suggest bullish control. A closure above resistance is necessary to confirm further upside potential. Conversely, rejection may lead to revisiting prior interest areas. A breakthrough above resistance could propel WAVES to a new all-time high.
Daily Timeframe Insights
Shifting to the daily timeframe and maintaining a logarithmic view provides a clearer picture for decision-making. Here, we observe price testing resistance. A rejection may lead to a sell-off towards $23, while a closure above resistance could see a revisit to $30. Patience is key, awaiting direction confirmation before making moves. Presently, bulls maintain control, though rejection could alter the trajectory.
Comparing WAVES to BTC
Lastly, using the logarithmic chart, WAVES has been stable against Bitcoin (BTC), maintaining its range for most of its existence. Recently, the token broke out of a minor downtrend, embarking on a strong upward journey, overcoming minor resistances. Now, it is testing major resistance, and breaking and closing above it could propel WAVES to a new ATH. Conversely, rejection may trigger a sell-off towards the previous breakout zone.
Accumulating WAVES might lead to a breakout, with the monthly timeframe favoring bulls, though weekly insights show uncertainty. On the daily timeframe, bulls are in control, and comparisons with BTC suggest a potential new ATH upon breaking resistance.
Remember, these observations are subjective and should complement your research. For beginners, explore guides on identifying support and resistance levels to grasp the basics. For further insights, visit CoinMarketCap.
Note: This article contains links to third-party websites for informational purposes. These are not under CoinMarketCap’s control, and inclusion does not imply endorsement. Conduct thorough research and analysis before making material decisions. This article is not financial advice and reflects the author’s views, not necessarily those of CoinMarketCap.
