The price has shown some exhaustion, suggesting that a pullback might start soon before a new rise toward USD 16.17. WAVES left a significant rejection of low prices, suggesting that the drop might bottom out to resume the long-term bullish trend.
The death spiral of Terra seriously affected the price of many cryptocurrencies, including the WAVES token. However, the latter has recovered from its dramatic drop by more than 120%. The following analysis will allow knowing the details of how that happened.
WAVES is trading at around USD 9.67 and has accumulated a 1.1% gain over the last 24 hours. While its daily trading volume is above USD 1.09 billion, its market capitalization is about USD 964.99 million. It occupies 63rd place in the cryptocurrency ranking, according to CoinGecko.
The Price of WAVES Seems to Have Bottomed out
The space for selling was very tight after the value of WAVES dropped by 93.53% from its all-time high of USD 63.88. The bulls exploited the weak resolve of the sellers, but the price seems to have already reached the bottom.
WAVES rapidly fell in early April, when a stablecoin native to its blockchain lost its peg with the US dollar. However, the team took measures that prevented a worse situation and restored the parity of the USDN with the American fiat currency.
The death spiral of Terra instilled further fear into the investors of WAVES, who expected something similar to happen.
Ironically, the factor that determined the strong rally of the price of that cryptocurrency was its earlier considerable drop. If the base holds or improves and the price drops out of fear, it is reasonable to expect to see previous price levels.
Following a crash like that of the price of WAVES, the potential gains are considerable. Even with the recent big rally, the price is still 550% away from its all-time high.
Weekly Technical Analysis of the Price of WAVES
The WAVES/USDT daily chart shows an excellent behavior of the price after a single candlestick on May 30th. It managed to overcome almost thirty days of continuous decline.
The current momentum is upward, as the bulls control the short-term trend.
Since the price has shown some exhaustion over the last two days, a pullback seems likely to start soon. After that, there could be a new rise in the value of WAVES. Its next target is to reach USD 16.17 and break above the still bullish 200-day SMA, tracking the medium-term trend.
Monthly Analysis of the Price of WAVES
The monthly chart shows that WAVES left a significant rejection of low prices, suggesting the fall might bottom out. In that way, it would resume the long-term bullish trend.
The value of WAVES might still be in trouble for a while longer and may remain locked into a sideways range. After that, it would effectively resume the previous trend.
The price has recently broken through the 8-day EMA and 18-day SMA to the downside, giving a short-/medium-trend signal. However, the strong rejection of support at USD 4.90 indicates little room for selling.
By Alexander Salazar
