Waves (WAVES) increased by 140% in just eight days

Waves (WAVES) has regained an important horizontal level after creating a bullish pattern combined with a bullish divergence.

WAVES has been declining along with a descending resistance line since hitting an all-time high of $41.86 on May 4. The drop has led to a low of $7.56 on May 24. January.

The price has been increasing since then and increased significantly on Feb. 28. The upward move sparked a recovery of the $12.50 horizontal area, which had previously acted as support since May of last year. 2021. Since this area has now been recovered, it will count the previous January 2022 incident as a deviation only.

The nearest resistance area is $24.50. This is the 0.618 Fib retracement resistance and coincides with the aforementioned descending resistance line.

Future WAVES Movement

Cryptocurrency trader @CryptoCapo_ tweeted a chart of WAVES, showing that the current uptrend is correcting.

However, the uptick was preceded by a significant bullish divergence in both the MACD and the RSI during the February 4 and February 21 lows. This movement also created what is similar to a double bottom, is considered a bullish pattern.

Plus, the RSI is currently above 50 and the MACD is in the positive zone. Both of these are considered signs of an uptrend.

The last time both these indexes produced the same results was in August 2021. This resulted in WAVES up 112%, leading to a high of $34.90 in the process.

Short term movement

When measuring the January 24 initial gain, the gain that began on February 24 is 2.61 times the length of the initial upward movement.

As a result, short-term disapproval may occur at this level.

This is further supported by a bearish divergence forming in the RSI. I

If a rejection occurs, the nearest support will be between $12.5 and $14, an area created by the 0.5 – 0.618 Fib resistance levels.

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