Unlike some cryptocurrencies which have struggled to recover this week, Waves (WAVE) has managed to gain 70% on its price from the recent swing low.
The Waves is regarded as one of the fastest blockchain platforms for storing or exchanging tokens.
According to Coinsutra, Waves enables the creation of custom tokens, which means one can launch a new cryptocurrency. Thus, it allows users to decentralize trading and crowdfunding.
The platform allows users to launch ICOs in a matter of minutes, without going through intensive cryptocurrency coding. Hence, it comes as a very useful tool for startups, as it opens up a new era of community-backed projects.
As is the case with the majority of other coins, the recent dip in the cryptocurrency market has pushed WAVE to breach its key horizontal support. as well. However, unlike those coins that breached support, the WAVE coin has almost recovered all of its losses.
Graph 1. Waves (WAVE) daily chart
The daily chart above (Graph 1) shows the price that has recovered to the first of the two horizontal supports (the lower red line), which also coincides with the mini descending trend line (the green line).
Before that, the 127.2% Fibonacci extension provided the expected support for bulls around the $1.75 level, before the breach occurred and the price dipping below the $1 handle. In case the price manages to push above the lower horizontal resist, the next resistance will be located slightly above – around $1.84.
The failure to move above the first resistance though will likely result in the rotation back lower. The ultimate target for the bears is the 161.8% Fibonacci extension support, located around $0.19.
Waves is currently the 38th biggest cryptocurrency in the world with a market capitalization of around $150 million.