Cryptocurrency Waves (WAVES) broke through the annual resistance, which turned into support. Technical indicators and wave analysis indicate the prospects for continued growth.
Breakout of long-term resistance
For most of 2019 and 2020, the altcoin has consolidated near record lows below $1. In July, quotes began to climb, which took the coin to a high of $5,02 in August.
This breakout is very important for the further dynamics of the cryptocurrency, since during the rally, the quotes successfully broke through the $3,2 area, which acted as resistance for more than a year. Also here was the level of 0.618% Fibonacci retracement relative to the previous bearish move.
Completion of the correction
Technical indicators on the daily chart paint a favorable picture. MACD is giving signals of bullish reversal and is almost back in positive territory. Stochastic RSI is preparing for a bullish crossover and is almost out of the oversold zone, while the RSI has bounced off the 50 level and is heading north.
Shorter-term charts also look positive. The price broke through the downward resistance line on August 28 and has been growing since then.
Technical indicators signal the outlook for a bullish momentum:
• The RSI provides hidden bullish divergence signals.
• Stochastic RSI has formed a bullish crossover.
• MACD signals a bullish reversal.
All this speaks in favor of the further rise of the coin in the direction of the $ 5 resistance.
Since March 13, the coin has formed an impulsive five-wave structure (highlighted in black in the chart below). The third wave looks stretched and contains five sub-waves (blue in the chart), and the third sub-wave is also stretched (orange in the chart).
The price has completed the fourth sub-wave and began the fifth, which should end near the aforementioned $5 resistance.
If it falls below the low of the fourth wave of $2.85, this wave analysis will lose its relevance.
Cryptocurrency trader @TraderLenny notes on the WAVES/BTC pair chart that the price has confirmed the status of an important resistance level and will eventually head towards the 70,000 satoshi mark.
The aforementioned resistance, which turned into support, passes at the 26,000 satoshi level. The pair has not previously traded above this level since May last year.
The technical indicators on the weekly charts are painting a favorable picture and the pair is likely to head towards the next 70,000 satoshis resistance zone.