WAVES has been trading within a broad corrective structure after a major decline. Recent price action suggests a potential reversal attempt, but it remains constrained by key resistances.
The charts indicate a critical phase where a breakout or breakdown will dictate the next trend direction.
WAVES Price Analysis
The daily WAVES chart showcases an extended downtrend after an all-time high from Mar. 31. 2022. at $62, followed by a potential bottoming formation.
A descending resistance trendline has capped previous rallies, with the price currently trading just below this key level.
The green demand zone between $1 and $1.30 has provided strong support, leading to multiple rebounds.
Elliott Wave labeling suggests that WAVES is in the early stages of a potential impulsive wave sequence.
The corrective phase (WXY structure) appears to have concluded within the demand zone at around $1, reinforcing the probability of an emerging wave (i).
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The daily Relative Strength Index (RSI) remains neutral but has started curving upward, indicating increasing buying interest.
The breakout attempt on Dec. 4. faced strong rejection at $2.71, leading to a retracement. A confirmed breakout above the descending trendline could initiate a stronger bullish wave toward higher values.
On the other hand, failure to sustain above $1.30 could lead to a retest of lower support levels, possibly revisiting the $1 region.
The price remains at a crossroads, requiring a decisive move beyond resistance to confirm bullish continuation.
WAVES Price Prediction
The 4-hour chart presents a more detailed view of WAVES’ potential short-term trajectory. The price action formed a new impulsive structure, with Wave (ii) completed on Feb. 6. at $1.25 and Wave (iii) currently in motion.
The initial wave (iii) breakout attempt from Feb. 13. was rejected at $1.90 near the 0.5 Fibonacci extension, but the price remains above the key support of $1.30.
If the current wave count holds, WAVES is likely in the early stages of Wave (iii), which could target the $6.57 (1.618 Fibonacci extension) zone in the coming weeks.
Further Fibonacci projections suggest that the next key resistances lie at $2.67 (0.786 extension) and $3.36 (1.0 Fibonacci extension).
However, WAVES must break above the descending trendline and hold above $1.70 for this bullish scenario to play out.
A rejection at these levels could delay the uptrend, leading to consolidation within the $1.30 – $1.47 range before another breakout attempt.
A downside invalidation of the bullish wave structure would occur if the price breaks below $1, indicating a continuation of the broader downtrend.
Key Levels to Watch
- Immediate Resistance: $1.75 (descending trendline).
- Key Resistance: $2.67 (0.786 Fibonacci retracement).
- Major Resistance: $3.36 (1.0 Fibonacci extension).
- Immediate Support: $1.30 (local demand zone).
- Critical Support: $1 (breakout invalidation level).
- Bullish Target: $4.52 – $6.57 (wave (iii) targets).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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