HODL or sell? Can WAVES hold onto these two levels for another leg up?

Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Waves moved higher on last month’s wild rally. It hit a local high at $31 before pulling back to trade at $26.2 at the time of writing. The announcement of the Waves migration to Waves 2.0 may have sparked investor interest. Buying pressure remained high and $37 could be the next target if $31.2 breaks. This goes against the short-term bearish mood in the rest of the crypto world. And the most pertinent question here is: can WAVES keep swimming against the current?

WAVES- 1H

Source: WAVES/USDT on TradingView

The $21.1 local highs were retested as support a few days ago before WAVES moved higher to $24 and $31. Similarly, the $26.2 level and the $24 area could see demand arrive.

Short term investors would be interested to see if WAVES can hold these two levels. A range of Fibonacci retracement and expansion levels (yellow) were plotted from $11.02 and $21.1, and they gave expansion levels at $23.84, $27.33, $31.18 and $37.41 onward to the North.

A session closing below the USD 24 area (cyan box) could see a deeper retracement. A move above $28 could usher in the next leg up.

rode

Source: WAVES/USDT on TradingView

The previous day saw the RSI and the price develop a bearish divergence (white) and saw a pullback from the $31 mark. At the time of writing, it stood at 43.22. A hidden bullish divergence (higher price lows, lower RSI lows) could push the price back up.

The MACD formed a bearish crossover and also fell below the zero line. The CMF was at +0.06. And, again, signaled strong buying pressure.

Conclusion

Bitcoin and the rest of the altcoin market have been quite volatile, but Waves has only seen an uptick in the past two weeks. This could continue and see asset trading at $37 soon. On the downside, a drop below $24 could see the price bounce back further.

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