WAVES was one of the coins that was most affected by Terra’s death spiral, however, it has also recovered very strongly. What is behind this uptick?, here we find out.
At the time of this writing, WAVES is trading at $9.58, accumulating a gain of 8.07% in the last 24 hours and 93.83% in the last 7 days.
With a capitalization of $1.037 billion, this cryptocurrency ranks 52nd in the crypto market.
Is the space for sales running out?
After falling 93.53% from its all-time high of $63.88, the space for sales was very limited. The bulls took advantage of the low determination of the sellers, and now it seems that the bottom has already been reached.
Recall that the WAVES cryptocurrency fell at a high speed in early April, when a native stablecoin of this blockchain lost its parity with the dollar.
However, the quick measures that were taken by the team prevented a worse bleeding, and managed to restore the parity of the USD with the US dollar.
Then Terra’s death spiral injected even more fear into Waves investors, who feared that something similar might happen.
It seems that the determining factor behind the strong rally of this currency was, ironically, the previous big fall. If the fundamental base is maintained or improved, and the price falls simply out of fear, it is not unreasonable to expect that previous price levels will recover.
The potential gains are very large after a crash like that of the WAVES cryptocurrency. Even with the big recent rally, the price is 550% away from its all-time high.
WAVES technical analysis while recovering
Today from the WAVES vs USDT daily chart we can observe an excellent price behavior, after a single candle (the one on May 30) managed to wrap almost a month of continuous fall.
It is clear that now the momentum is bullish. The bulls are in control of the short-term trend.
Yesterday and today the price has been showing some exhaustion, so it seems likely that a pullback is about to begin. Then we can wait for a new rise. The next target is to reach $16.17, and overcome the 200-day SMA that is still bearish, tracking the medium-term trend.
Monthly chart
From this time frame we can see how the price left a strong rejection of low prices, announcing the possible bottom of the fall, in order to resume the long-term upward trend.
We could still see the WAVES price in trouble for a while longer; perhaps locking into a sideways range before effectively resuming the previous trend.
The 8-period EMA and 18-period SMA moving averages recently crossed to the downside, which could be a bearish signal for the short/medium term. However, the sharp rejection of support at $4.90 tells us that there is not much room for sales.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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