Bulls force Waves past $2 once more- Can they reach June highs?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Waves has performed incredibly well on the price chart since mid-June.
• It seemed WAVES bulls have another leg upward left in them as evidenced by the steady buying pressure in recent days.

Waves [WAVES] bulls made a remarkable move on the price chart late in June. After trending downward since early March, the bulls exploded onto the scene. From 15 June onward, the price of WAVES slowly began to climb higher.

Read Waves’ [WAVES] Price Prediction 2023-24

On 24 June, WAVES rocketed from $1.55 to $2.89, a 1-day gain of almost 87%, before sinking into a pullback. Over the past week, the token’s price consolidated around the $1.9 mark before climbing to the $2.15 region yet again.

Waves had a strong bullish outlook but could it be too early for another run?

Source: WAVES/USDT on TradingView

The pump from $1.3 to $2.89 was used to plot a set of Fibonacci retracement levels. In the past two weeks, WAVES retraced to the 61.8% level at $1.9. It dipped as low as $1.78 on 30 June. At the time of writing, the market structure of WAVES was bullish once more on the 4-hour chart, after the move above $1.99. The RSI also showed bullish momentum.

The OBV was also in an uptrend since 26 June, even though WAVES itself saw a pullback. This was a strong sign that the bulls were getting ready for another move upward and were accumulating the token in anticipation. In contrast to the OBV, the CMF showed that capital flow was directed out of the market for the most part since 26 June.

The 1-day chart showed that the $2.14 level was a previous lower high from late May. The rally above this level meant the market structure on the daily timeframe was bullish as well. Hence, swing traders can look to build long positions in the $1.9-$2.1 region, targeting the local high at $2.89. More ambitious bulls can wait for a move to the 23.6% extension level at $3.26.

A question that remained was, have WAVES accumulated for long enough to warrant such an eruption of bullish sentiment? WAVES traded in the $1.83-$2 region from 1 July to 6 July, not even a whole week. Were the bulls already looking to push for another move north measuring at least 40%? Possibly not, hence, swing traders should be cautious with their position sizing.

Is your portfolio green? Check the Waves Profit Calculator

The massive surge in Open Interest noted strong bullish sentiment

Source: Coinalyze

According to Coinalyze data the OI of Waves has almost doubled in the past 24 hours, climbing from just over $30 million to $59.8 million. This occurred in a short time as well, suggesting an enormous influx of capital in the futures market.

Yet, the spot CVD on the 1-hour chart saw a negative slope in recent hours. Could this point toward an altcoin musical chairs, with coins seeing a strong, random rally before slumping lower? It was unclear yet. The evidence at hand points toward further bullishness, and the OBV reinforced the idea that the buyers remained dominant.