- Waves price is on the verge of a technical correction.
- Growing selling pressure may see Waves to retest $4.6 or $4.
Waves skyrocketed nearly 160% after reaching a low of $2 in early October. However, the multiple technical indicators suggest that the cryptocurrency is poised to undergo a massive downside correction prior to resuming the recovery within its higher highs pattern.
Waves price may retest support before moving to new highs
The TD Sequential indicator presented a sell signal on Waves 12-hour chart. The bearish formation came out in the form of a green nine candlestick, estimating that the growing selling pressure for this token may see prices develop from one to four red candlesticks on the 12-hour chart.
However, if the downside momentum is strong enough, Waves might start a new bearish countdown.
WAVES/USD 12-hour chart
If the downside correction starts gaining traction on the approach to the current resistance level of $5.3 level, Waves can slip to the initial support created by the 0.78 Fibonacci retracement level at $4.6. Moving past this local barrier, the price may push towards the next important area of interest, around psychological $4, which coincides with 0.61 Fibo.
WAVES/USD 12-hour chart
It is worth noting that Waves price must continue to hold above the $4 support level to retain the long-term bullish outlook to be validated. Failing to do so would trigger an extended bearish correction towards $3.7, potentially $3.3 before new buyers join the market.
However, if the $4.0 holds, Waves will resume the recovery and retest the current resistance of $5.3. Breaking above this area will invalidate the bearish scenario and bring $6 into focus.
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