The native token of the platform WAVE is trading at 49.88% down from the December 2022 peak. The statement from the Waves blockchain CEO regarding the launch of a new stablecoin failed to grab buyers' attention in this token.
On Dec. 20, Ivanov announced on Twitter the USDN situation resolution plan beside a new stablecoin project.
The new stablecoin will be backed by the DAO characteristic and will follow a hybrid structure among other algorithm-based stablecoins. The founder added that the approach is to implement it to the Native Waves and it cannot be implemented on other blockchains.
The WAVES token price faces strong bearish pressure in recent trading days, where the major push came from the Digital Asset eXchange Alliance (DAXA), the South Korean crypto platform that raised a question regarding the Wave’s sustainability. Since the warning has become public, WAVES has lost about 30% of its value, according to CoinGecko data.
The current circulating supply of the Waves token is 110,253,070 WAVES, while the current market cap is $141,753,811. The trading volume for the last 24 hours is recorded at $43,160,027, which is 4% down from the previous day.
Should you invest in WAVES/USD from the discounted price?
Let’s see the upcoming price direction from the WAVES/USD technical analysis:
Waves (WAVES) Offers A Bearish Trend Continuation Opportunity
The selling pressure in the WAVES/USD price is solid as shown in the daily price. Therefore, the primary idea of this instrument is to look for bearish opportunities in the intraday chart to find a highly probable trading opportunity.
Before proceeding further about the WAVES/USD price outlook, let’s see the tradable range- the immediate selling pressure with a bullish liquidity grab is spotted at the 2.564 resistance level, which is the top of the range. However, on the downside, there is now a significant bottom to consider. Therefore, the primary outlook for this token is to look for a bearish opportunity until a bullish recovery comes with a new higher high formation.
The fixed range high volume level is also spotted above the current price, but the gap between the high volume level is expanded. It is a sign that the price came way below the 2.309 high volume level, where a bullish recovery is pending as a mean reversion.
The other two trend-following indicators show a bearish signal as the 20 EMA is above the price. However, the RSI is still on the sellers’ side even if it is below the 30% level.
The hope for bull is that the RSI reached the oversold level, where a descending channel breakout could offer a long opportunity toward the 2.564 level. In that case, a new high-volume level formation is needed with a stable price above the 1.638 static level.
As the broader outlook is bearish, any short opportunity from the channel resistance could lower the price towards the 1.000 and 0.711 support levels in the coming days.
Waves (WAVES) Ichimoku Cloud Analysis
In the H4 timeframe, the broader outlook is extremely bearish as the current price is holding for a considerable time below the Ichimoku Kumo Cloud. However, the gap between the price and Cloud resistance has expanded, which opened a reason for relying on a bullish correction.
In the future cloud, the Senkou Span A (green line) and Senkou Span B (red line) indicate a strong selling pressure in the market. However, the potential MACD Divergence with the Histogram at the neutral level is a sign that the price might find a bottom.
Based on the H4 price outlook, a strong bullish breakout with an H4 close above the 1.443 key resistance level could open a long opportunity in this pair. Therefore, the upside target will open towards the 1.938 swing high.
Despite the bullish possibility, the high probable short setup is waiting for a bearish rejection from the 1.442- 1.390, which can lower the price towards the 0.711 area.
Waves (WAVES) Intraday Price Action Outlook
In the H4 chart, a bearish rejection from the dynamic 20 EMA is present, pushing the price down.
In the Traders Dynamic Index Indicator, the current TDI level is aiming towards 50% but a stable position to the overbought zone is needed to consider the bearish momentum as invalid.
The H4 high volume level is 2.394 level, where the long gap between the price and high volume level could offer a bullish mean reversion opportunity.
Based on this price context, a bearish possibility is valid towards the 0.711 key support level. However, a strong bullish recovery and an H4 close above 1.6000 could eliminate the current bearish possibility and open a long opportunity, targeting the 2.000 area.
Is WAVES/USD A Buy?
Based on the current multi-timeframe analysis. WAVES token is not a buy yet as the broader outlook is strongly bearish. Investors should wait for a valid bottom formation and at least two swing high in the daily chart before opening a long position.