WAVES registered uptrends within the past week, shifting its short-term market structure to bullish. Meanwhile, the token discovers a vital support zone and might attract demand to drive the alt higher in the up-and-coming hours.
Nevertheless, BTC struggled to conquer the resistance at $44.4K and could not convincingly push past $45K. That might see Bitcoin plummeting towards the $42K – $43K range, a development that might trigger pullbacks in the alt marketplace.
Analysts plotted FIB retracement zones following WAVES’ rebound to $12.09 from $7.56 in late January. They also noted a southward correction to $8.37, beneath 78.6% retracement zone ($8.53) of the mentioned upside move.
The altcoin saw bullish momentum since then, registering multiple higher lows and higher highs to form a near-term upswing to $11.48. However, WAVES retraced once more, touching the $10.18 value level.
The token discovered demand near $10.18 amid two different tests in hours, and bullish strength increased alongside trading volume over the past 24 hours. WAVES price touched $12.21, beyond the swing peak for the FIB retracement zones. However, sellers pushed the token lower again.
While publishing this blog, WAVES traded around $11.48, and a close below this zone might see the alternative coin heading lower towards $11.02, then $10.18. That is because the candlestick close would witness the latest higher peak broken. That would mean bears dominating in the upcoming hours.
Reasoning
The hourly chart’s Relative Strength Index swayed to 70 from 30, suggesting a ranging price move. If the narrative continues, the following ‘buy’ opportunity will emerge when the indicators approach 30 as the coin hovers around a massive support zone.
The on-balance volume maintained a steady surge within the past fourteen days. That indicated more buying momentum than selling pressure and a genuine demand behind WAVES’ latest bullish move.
Final Thought
For now, bulls’ reaction around $11.48 would determine WAVES’ directional bias within the coming few hours. A southward move would find support at $11.02, then $10.36 to $10.18. A bullish action from the $11.48 zone would trigger a surge to $13.32, the level with the confluence with the previous demand area for the coin last month.