Trade Recommendation: Waves
2019 hasn’t been so kind to Waves (WAVES/BTC). The market has been unraveling ever since it posted a high of 0.001209 on December 19, 2018. The selling has gotten so bad that the cryptocurrency flash crashed to 0.000001 on April 17th. Fortunately, bulls bought the massive dip which stabilized the market.
While the dump would continue, recent price action along with technical signals are giving us the confidence that Waves is due for a bounce,
Technical analysis shows that WAVES/BTC is carving a short-term bottom at 0.00016. We have this view for several reasons.
First, the cryptocurrency has been trading around this level for about two weeks now. This tells us that bulls are attempting to establish a base where a new cycle can begin. Technical indicators support this view.
We can see a significant spike in volume on July 6th and July 7th. These volume upticks tell us that buyers are returning. Also, the cryptocurrency is massively oversold in both the weekly and daily RSIs. On top of that, we can see a bullish divergence on the daily RSI. These signals tell us that bears are exhausted and this might give the bulls the opening to ignite a bounce.
The strategy is to buy as close to 0.00016 as possible. If bulls can keep the market from falling further, we can expect Waves to rally to our initial target of 0.00023. Take that out and 0.0003 is next. Take profits quickly because we are simply playing the bounce.
The process may take less than a month.
Daily Chart of Waves/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00016 as possible.
Targets: 0.00023 and 0.00030.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.