WAVES: What are shorting traders to do when $5.9 becomes resistance?
From $4.5 to $7.15 in the preceding week, Waves’s price increased by about 50 percent. Nevertheless, bulls were unable to capitalize on this rapid upswing. The retest of $5.9 was met with a feeble WAVES price bounce, and the altcoin created a lower at $6.50. Over the past few days, the price has fallen below the $6 request zone area. Can this sell momentum wipe out additional gains from the prior week and push WAVES lower to $5? Let us check.
Four Hour Window for WAVES
In the first two weeks of June, as indicated by the 4-hour chart, Waves continued enormous downward tendencies. On the price chart, the alternatives token made multiple lower highs at $7.3, $6.6, and then $5.9. During mid-June sessions, $5.1 performed as another lower high and resistance. However, purchasers resisted trading below $4.3. This caused WAVES to rise with difficulty.
The price increased from $4.5 to $7 in a matter of hours before returning to $5.9. Despite this, the price was unable to maintain large rallies. The Relative Strength Index fell below the neutrality value of 50 as the price plunged below the previous demand zone of $6. That proved a shift in sentiment from bullish to negative.
WAVES 1Hr Time window
The 1-hour chart supports the retest of $5.9 numerous times. In the meantime, the last couple of hours compelled a session close below $5.9 and extended lower towards the $5.5 support level. WAVES previously posted a bullish bifurcation. This caused prices to rise somewhat to $5.94 from $5.8 before falling to $5.6.
Recently, WAVES established a disguised bearish divergence. Hidden divergences signal a continuance of the trend. On the other hand, the bias has remained bearish for several days on shorter timescales such as the 1 hour. Thus, a declining trend developed. Additionally, the two Supertrends displayed a sell signal, while the Stochastic Relative Strength indicator produced a pessimistic cross above 80.
Indicators based on Vibrations suggested that negative strength could persist and provide a sell signal. In addition, the market sentiment demonstrated that $5.9 became resistance. Therefore, investors should anticipate a move to $5.5, then $5.15. Bitcoin’s selling strength could provide WAVES with the necessary unfavorable impetus for leg downs on the price charts.