Waves coin has been one of the most bullish coins and the top gainers of the market. Even with the BTC going down and the whole market red, it has shown strong momentum.
Starting from the weekly Time frame, for the past 15 weeks, the candles which are being printed are bearish, and only 2 weeks within these bearish waves, the candles closed as bullish but still with very low volume. So it’s just not too great to go against such momentum. So the bias in which the weekly time frame is given is for short.
Moving to the daily time frame, Structure wise the price of Waves is bearish but the momentum which price recently showed to the downside was huge which has left inefficiency within the candles which price is now filling or one can say has already filled 80%. There’s nothing more on weekly and daily and it’s still not enough confluences so now moving to the 4 hour time frame.
On 4H time frame, a change in the structure of Waves has been observed which could potentially give us a long opportunity but as the Higher time frame hasn’t given any major structure shift it’s preferable to go with the shorts. It can be observed that the area where price has recently reacted is a supply zone known as DROP BASE DROP but here, one can’t neglect the momentum. As when the price was pushing down, it didn’t just reverse immediately, it consolidated it manipulated, and then an expansion was observed to the upside.
Fractal Movement
As price is fractal, the same scenario is being witnessed but in the opposite direction. The price of Waves still has the momentum and it’s consolidating at the moment, and it’s very possible that price can reach the level of $12.87 as its 4H & Daily mitigation Block. Now in case one is to take long and the price doesn’t tap in our desired Point of Interest, the Breaker Block zone which is around $9.23 is a great place to take longs. As the momentum is strong, the likelihood of price to reach the Order block is very less.
Short Position – Waves
Now coming back to the shorting scenario, the invalidation point would be $13.71 as that is the structural high, while the targets could be the Breaker Block and $7.95 as just above that many Supply Demand traders would be interested to buy, whom price can take out.
