WAVES Price 60% Jump Halts At $2.4. Is It A Buying Entry Spot?

The post WAVES Price 60% Jump Halts At $2.4. Is It A Buying Entry Spot? appeared first on Coinpedia Fintech News

With a strong bullish trend in motion, the WAVES price trend sustains dominance over the $2 mark. Currently, the pullback phase in the uptrend brings an entry opportunity for sideline traders and teases a bounce back to higher levels. 

However, the slowdown in the altcoins market warns of a breakdown possibility like the support trendline fallout. So, should you consider buying this or wait for a breakout signal?

Source- Tradingview

The higher low formation trend in the WAVES price trend finds the support of the 50D EMA and reached the $3 mark in early 2024. However, the recent pullback to the support trendline leads to a longer consolidation compared to previous bounce-backs. 

However, the recent overnight jump of 1.88% finds the support of increased trading volume, improving the reversal chances. Currently, the WAVES price trades at $2.439, with a Doji candle formation reflecting an indecisive phase for the altcoin. 

Nevertheless, the weakness in the trend momentum is minimal and this supports the reversal possibility. Hence, the dip in the altcoin to the support trendline is a potential buying opportunity for the sideline traders. 

Technical Indicators:

RSI Indicator: The daily Relative Strength Index (RSI) indicates a trend of recovery, moving laterally as it nears the midpoint. This suggests a temporary halt in the momentum of the recovery trend.

EMA: The 50D EMA provides dynamic support to the growing trend and aligns with the rising trendline. Further, the confluence with the 38.20% Fib level increases the chances of reversal. 

Will The WAVES Price Reach $5?

The WAVES price, currently finding support at the crucial $2.40 level, aligns with the 38.20% Fibonacci level, suggesting a potential reversal rally. This could present an entry point for traders on the sidelines, as a suitable buying opportunity.

If a reversal does occur, the uptrend could gain enough momentum to challenge the $3 high, possibly leading to a breakout that could extend up to $5. However, should the price fall below the $2.40 support level, it could trigger a further decline, potentially testing lower levels at $2.26 or even $2.