The Waves (WAVES) price has been declining since reaching a high on Nov. 23. Despite an upward move last week, the breakdown from the current short-term pattern suggests the price will head lower.

On Nov. 23, the WAVES price reached a high of $8.86 before dropping sharply. While the high was above the $7.20 long-term resistance area, the price has fallen back below it, solidifying its significance.

While the MACD and Stochastic Oscillator are still increasing, there is a massive bearish divergence that has developed on the weekly RSI, which is often a sign of a trend reversal.

On the weekly time-frame, the closest support area is at $4.

(Note: The logarithmic chart is used in the image below to better visualize large price fluctuations)

The daily chart for WAVES provides a more bearish outlook.

First, we can note several long upper wicks during the recent highs, a sign of selling pressure.

Second, indicators have begun to turn bearish. All three of the RSI, MACD, and Stochastic Oscillators are falling, the latter being very close to making a bearish cross. Furthermore, the RSI has fallen below 70 after forming bearish divergence.

The closest support area is at $4.66, being both the August highs and the 0.618 Fib retracement level of the most recent upward move.

The shorter-term two-hour chart supports the possibility of a decline since the 0.5 Fib retracement level and the $7.15 resistance area rejected the price, causing a sharp decline afterward.

Furthermore, the price has broken down from a parallel ascending channel, confirming that it’s heading lower.

Cryptocurrency trader @TheEWguy outlined a WAVES chart, stating that the price is in an extended upward move and will eventually reach highs above $15.

While it’s possible that the longer-term count and movement will take the price above $15, the short-term count suggests that another decrease is in store.

The price seems to have completed a bullish impulse (shown in orange below) and is now inside an A-B-C corrective structure (orange). The breakdown from the channel also supports the structure as a B wave.

If the A:C waves have a 1:1 ratio, the WAVES price would fall all the way to $4.31, only slightly below the previously outlined $4.66 support area, thus providing confluence for the potential bottom.

To conclude, the WAVES price is likely to move downwards towards $4.66 before potentially beginning yet another upward movement.

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

The post WAVES Falls Back Sharply and Targets Recent Lows appeared first on BeInCrypto.

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