WAVES Price Stuck in Downtrend — Maintains Support Above $1.50

Key Takeaways

• Testing major descending trendline resistance.
• Possible completion of corrective Wave (ii).
• Fibonacci levels indicate a strong upward potential.
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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).