Waves has experienced a small price drop over the past 24 hours totalling 1.13%. Waves is currently being traded at $2.69 and has experiecned a steep decline of 13.40% over the past 7 trading days. However, all hope is not lost as Waves currently rests at a strong level of support.
Waves was founded by Sasha Ivanov during June 2016 and was intended to become a blockchain based decentralised exchange. This means that users will be able to hold their own funds on the decentralised exchange instead of trusting third party exchanges to hold their coins.
The platform uses a consensus algorithm known as Leased POS which requires users to hold 10,000 WAVES to run a full node. This allowed users to lock their funds up within the network to secure it. In return, nodes are rewarded in fees and can earn up to 5% per year depending on how many Waves are staked.
Waves was also intended to become an easy to use solution for people to be able to create and distribute their own cryptocurrency. It is as simple as naming the coin and deciding how much supply is required, although other features can be added. The platform can also allow for the use of smart contracts via plugins provided by the Waves team.
Waves has recently come out of its beta stage, after 53 beta releases, as the team officially launch the Waves client. Over the beta stage the team had recorded over 330,000 wallets on the platform. They had also counted over 90,000 traders with over 17,000 different tokens created.
Waves is currently ranked in 46th position in terms of overall market cap across the entire industry with a total market cap value of $269 million. This is a concerning $585 million lower than the market cap high of $854 million seen on the 29th of April 2018. Waves has experienced a 4.28% price drop over the last 30 trading days.
Let us continue to analyse price action over the long term.
WAVES/USD – LONG TERM – DAILY CHART
Analysing the market over the long term, we can see that price action had experienced a significant surge as prices started from a low of $0.33 on the 2nd of April 2017 and rose to a high of $18.98 placed on December 19th 2017. This is a total price increase of over 5000% from low to high.
After placing this all time high, price action went on to decline, originally finding support at the .618 Fibonacci Retracement priced at $7.46. This is a Fibonacci Retracement measured from the entire bullish run outlined above. Toward the end of January, price action fell below the 100 day moving average and subsequently fell below the .618 Fibonacci Retracement to find support at the .786 Fibonacci Retracement priced at $4.32 in February.
The market briefly experienced a bullish run during April but eventually succumbed to the bearish pressure and continued to fall to where it is currently trading near the .886 Fibonacci Retracement priced at $2.45. As of today, Waves is currently down 86% from its all time high placed in December.
Price action is currently trading at the starting level of the bullish run experienced from November 2017 when the market surged over 5000%. The .886 Fibonacci Retracement should provide an area of significant support moving ahead.
Let us continue to analyse price action for Waves a little closer over the short term.
WAVES/USD – SHORT TERM – DAILY CHART
Analysing the market from a shorter perspective, we can see that Waves had undergone another, smaller, bullish run during April. Price action started from a low of $3.27 on the 1st of April 2018 and extended to a high of $8.33 on the 3rd of May. This was a price increase of 157% from low to high.
However, the bullish momentum was not able to sustain itself as price action went on to plummet during the remainder of May. As June started to trade, price action fell below the initial starting point of the bullish run experienced in April, highlighted by the purple line. The market continued to drop lower until it found support at the .886 Fibonacci Retracement level priced at $2.45. We can also see that this area of support is significantly bolstered by the downside Fibonacci Extension priced in the same area. This is a Fibonacci Extension measured from the entire bearish move seen during May.
We can see that Waves has been range bound for the entire trading month of July, trapped between $3.27 and $2.45. If the bearish pressure within the market continues to increase and pushes the market below $2.45 we can expect initial near term support to come in at the psychological round number level at $2, followed by the downside 1.414 Fibonacci Extension level priced at $1.77.
Alternatively, if the bulls can step back into this market once again and push price action above the upper boundary of the range at $3.27, we can expect immediate near term resistance to be located at the 100 day moving average. The 100 day moving average is currently hovering around the $4 handle and will require significant bullish pressure for the market to overcome this level of resistance. Further resistance can be expected at the bearish .382 Fibonacci Retracement (marked in red) priced at $4.64.
The technical indicators within this market are currently swinging within the favour of the bears. The RSI is currently trading below the 50 handle indicating that bearish momentum is the predominant force currently within the market. If we would like to see the bulls start to take control again we would like to see RSI break above and stay above the 50 handle.
Similarly, the moving averages are trading in a sideways manner indicating that the market is largely undecided at which direction it would like to move to next. If we are to expect a bullish run we would need the 7 day EMA to cross up above the 21 day EMA for a bullish crossover.
Waves is a very solid platform with strong fundamentals behind it. With the platform recently coming out of BETA the team are ready to push the waves platform to the world.
With the increased exposure, we are likely to see an increase in volume if the decentralised platform even catches a small level of adoption.