Waves token value appreciated against the US Dollar after the company announced to launch a new smart contract protocol for their blockchain.
The WAVES/USD value on Binance rose from 1.90-fiat to as high as 2.76-fiat on the day of the announcement, amassing over 45 percent gains. The pair formed higher highs towards the said level during the mid-Asian and early-European trading session. Sellers began to implement their exit strategies thereon, bring WAVES/USD to a downside correction phase. As a result, the pair had already fallen towards 2.19-fiat by the beginning of yesterday's US trading session.
However, today, WAVES/USD reestablished its bullish momentum and is trading at 2.33-fiat at the time of this writing.
The Waves smart contract protocol will come into effect a week after the mining community consensus reaches 80 percent, the company announced on Steemit. It will begin with the release of Smart Accounts - non-Turing smart contracts - which will list some popular and in-demand features such as multi-signature wallets, atomic swaps, token freezing, whitelist voting, and data oracles.
Waves' new protocol also proposes to offer a viable solution Ethereum's notorious gas cost problems. In its announcement, the company stated that they will scrap gas cost for a standard transaction fee - that is minimal for the network and is completely foreseeable. Waves founder and CEO Sasha Ivanov stated:
"We are creating a user-friendly blockchain platform that will be easy for anyone to use. To achieve this we are trying to look at the system through the user's eyes and understand what they most need. This is the essence of our approach to Smart Accounts."
WAVES/USD upside action has changed technical dynamics of a market that was recently appearing bearish. On its hourly Bitrex chart, the 50-H MA has crossed above the 200H MA. It's traditionally a bullish crossover, which could be further confirmed if 100H MA crosses above its 200H MA. The reactive downside correction, however, has brought both the RSI and Stochastic indicators into strong selling areas. They could further slip down inside the oversold areas and attempt an imminent bounce back to resume the uptrend.
As of now, WAVES/USD has a decent support around 2.19-fiat, which initiated the bounce back towards the intraday high near 2.67-fiat. We can assume that the pair will resume its uptrend on a bounce back from support - or from any historic support levels that come before it. Should it happen, the correction could bring a decent long opportunity towards 2.39-fiat, the interim resistance for today.
In the event of a breakout, such that WAVES/USD breaks above the resistance, a long position towards 2.52-fiat could yield a decent profit close. However, let's not forget to put a stop loss anywhere a few cents below the entry point to protect your trades.
A breakdown, in the meantime, could be possible if the prevailing bearish action is extended. If it happens, putting a short position towards 2.02-fiat while placing a stop loss some cents above the entry point looks ideal.
Featured image from Shutterstock. Charts from TradingView.