Waves Price Analysis: Weak Upwards Resistance
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- Short-term analysis shows major trendline resistance holding after a bullish breakout from a falling wedge pattern
- WAVES / USD pair is technically still bullish in the medium-term, with a Golden Cross underway
- If bulls can break the current weekly high, WAVES / USD could skyrocket once again.
WAVES / USD Short-term price analysis
In the short-term, WAVES is starting to retrace lower after a strong early week rally. As clearly illustrated on the four-hour chart, the rally was capped by trendline resistance, with the price currently consolidating before the next directional move occurs.
The MACD indicator across the lower time frames is showing that pressure is still to the downside and selling volumes are far outpacing buying volumes, despite the earlier rally.
A sustained break below the WAVES / USD pair’s 50-period on the four-hour time frame should be considered bearish, while a move above the 200-day may prompt buyers to test towards the weekly price high one more time.
Pattern Watch
The break out from the falling wedge pattern is the most technically significant development for the popular cryptocurrency in the short-term.
Key Moving Averages
Price is consolidating between the 50 and 200 period moving averages on the four-hour time frame, buyers should watch for a bullish crossover on a break above trendline resistance.
WAVES / USD H4 Chart (Source: TradingView)
MACD
The MACD indicator is trading in negative territory which is consistent with price, while selling volumes spiked to the highest levels of the week as the rally faded.
WAVES / USD Medium-term price analysis
In the medium-term, WAVES is technically bullish with price trading well above the pair’s 200-day moving average and the large head and shoulders pattern seen clearly on the daily time frame chart.
If the current rally were to fade even lower, swing traders may look for bullish entry on a test of the pairs 200-day moving average or indeed a further test of neckline support.
What is also apparent is that the massive December 2018 rally has created pockets of untested demand and supply close to the bearish pattern’s neckline.
It is certainly interesting times for WAVES / USD traders, this is one cryptocurrency that is worth watching. Looking at the bullish signals, some divergence from the overall cryptocurrency market moves is possible during the course of 2019.
WAVES / USD Daily Chart (Source: TradingView)
Pattern Watch + RSI
The bearish head and shoulder pattern and failed inverted head and shoulders pattern last year are worth watching on the daily chart.
The failed inverted pattern bearish projection may have been reached from last year, while the bearish head and shoulders pattern offers a warning of what could happen if price slips below the neckline.
Moving Averages + Volume
WAVES trades above its 50-day and 200-day moving averages, a bullish golden cross has occurred, traders should watch for price to remain above the 50-day for further bullishness.
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