Altcoin Bounces Back After 93% Plunge

• Course (WAVES): $8.67 (previous week: $5.65)
• Resistances/Goals: $10.47, $11.77, $14.79, $16.28, $17.17, $20.36, $22.50, $35.69, $42.21
• Supports: $6.01, $4.80, $4.13, $3.03, $2.13, $1.38

Waves Recap

• The Waves price has come under significant pressure in recent weeks, peaking 93 percent south before stabilizing at $4.13 in the last few trading days.
• The resemblance to the Terra ecosystem (Waves also uses an algorithm-based stablecoin called Neutrino USD) fueled investor fears of Terra LUNA déjà vu.
• Since the Neutrino USD also had to give up its peg to the US dollar several times, investors sold their holdings in Waves, which also pushed the price south.
• Starting from the 52-week low at USD 4.13, the WAVES price initially recovered by 37 percentage points to the resistance at USD 7.93 at the beginning of the week. Today, Tuesday, the WAVES price increases again and jumps north by a further 57 percent on a 24-hour basis.

• Only in the area of ​​the green resistance zone did increased profit-taking occur, which allowed the WAVES price to consolidate to currently USD 8.67.
• The recapture of the last significant trend low in the zone around USD 8.00 is to be rated bullish for the time being. If the buyer side succeeds in defending this support level in the coming days, investors will initially focus on resistance at USD 11.77 and above it at USD 16.28.
• The daily chart also shows a bullish picture with regard to the indicators. The RSI indicator as well as the MACD show fresh buy signals.
• As long as the WAVES price does not fall back below the support level at USD 6.01, there are further short-term opportunities for increases.
• On the other hand, a dynamic abandonment of the annual low at USD 4.13 would generate a new sell signal and activate the next bearish price target at USD 3.03.

Bullish Variant (Waves)

• The WAVES price is currently joining the dynamic recovery rally of many altcoins and has increased by 151 percentage points to USD 10.44 in the last two trading days, before a slight price consolidation back to USD 9.00 began in the last few trading hours.
• As long as the WAVES price can stabilize above USD 7.93 at the end of the day, the bulls can be expected to launch a new attack towards the cross-resistance at USD 11.77. In addition to the 38 Fibonacci retracement and the EMA50 (orange), the tear-off edge also runs here, the fall below which triggered the sell-off of the last trading weeks.
• If this strong resist can be broken this week, the Waves chart picture will continue to brighten. The orange resistance zone between USD 14.79 and USD 17.17 should then be started. The 50 Fibonacci retracement at USD 16.28 as well as the cross resistance from EMA200 (blue) and the intermediate high from May 5 at USD 17.17 represent possible price targets for the coming trading days.
• In the first attempt, the WAVES course will initially fail here. Only when the USD 17.17 mark is dynamically overcome can a trend follow-up in the direction of the blue resistance zone be planned in the medium term.

Conceivable bounce back above $20

• In addition to the strong horizontal resist at $20.36, investors will primarily want to target the 61 Fibonacci retracement at $22.50. Again, investors will make more money here. From the current perspective, this area can be derived as the maximum medium-term price target for the next few weeks.
• Only when the bull camp can stabilize Waves above USD 22.50 is a march through to the red resistance zone conceivable in the coming months.
• Pay particular attention to the resistance at $35.69. In addition to the 78 Fibonacci retracement of the complete downward movement, there are also old price highs from September and October 2021. For the time being, the red resistance area should be regarded as the maximum target area for waves.
• At most, the WAVES course could jump up to USD 42.21 with a spike. This price level already represented a striking high in May 2021.

Bearish Variant (Waves)

• The bears did a great job on Waves as well, pushing the price back into the purple support area between $4.13 and $4.87.
• Only in the last few trading days did the sellers run out of breath. The Bulls then took over the helm again.
• However, as long as Waves cannot sustainably break out of the strong resistance at USD 11.77, another sell-off can be expected at any time.
• A first indication of weakness would be seen in falling below the support at USD 7.93 again. If Waves sustainably slips below this price mark, a retest of the support at USD 6.01 is likely.
• If this support is also given up again, a relapse into the purple support zone must be planned.
• If Waves does not stabilize here and falls below the low for the year at USD 4.13, the correction movement should expand again.

Plan for new annual lows

• The first price target on the downside at USD 3.03 will be targeted by the bears immediately.
• If there is no bullish reversal in the area of ​​USD 3.00 either, a fall back to the intermediate lows from October 2021 at USD 2.13 is also conceivable in the medium term. In this zone, the bulls will again try to initiate a countermovement.
• Should the market as a whole continue to fall in the medium term, a correction of up to USD 1.38 cannot be ruled out in the long term. However, this maximum bearish price target should only be reached if the key crypto currency Bitcoin (BTC) also corrects well below the psychological mark of USD 20,000.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.93.