Emerging Pattern Threatens to Break $4.16 Support

Earlier this week, the WAVES price witnessed a significant inflow and jumped above the $6 resistance. However, a downsloping trendline of descending triangle pattern prevented further recovery and plunged the altcoin below $6. The sustained selling could lead the coin price to $4.3 bottom support

Key points: 

• Failed attempt from WAVES price to sustain above $6 may plunge the coin price to $4.3 
• The coin buyers mount strong support at $4.3
• The intraday trading volume in the WAVES is $816.9 Million, indicating a 56.5% hike

Source- Tradingview 

In the walk of USDN stable coin de-pegging from the dollar, the WAVES/USDT pair witnessed a massive sell-off, slumping it to a low of $4.16. Furthermore, the May-end recovery rally tried to carry the altcoin higher but couldn’t surpass $12.

Later June’s second week brought another wave of selling pressure and plunged the WAVES price back to $4.16. This level managed to stall the falling price twice, validating it as legitimate support.

On June 18th, the WAVES price rebounded from the $4.3 support and breached the immediate resistance of $6 with a long bullish candle. However, the retest candle closed below $6, indicating a fake breakout.

If selling pressure persists, the coin price will tumble 30% and sink to the bottom support of $4.3.

Moreover, the technical chart shows a descending triangle pattern bolstered sellers for this fakeout, and responding to it; the coin holders could also lose $4.16 support.

Technical indicator

The coin price failed to sustain above the midline of Bollinger band indicators to bolster the fakeout theory from $6 and should encourage a fall to $4.3.

Concerning the past two retests to the $4.3 support, the daily-RSI slope shows an evident positive divergence. This divergence indicates growth in bullish momentum, suggesting a possibility of a bullish breakout from the pattern.

• Resistance levels- $7.38, and $8.34
• Support level- $5.21 and $4.3