Waves after making its All-Time High, which was at $41.86, started breaking structures to the downside. The price has just Impulse to the upside after it was released. So a correction of this Impulse was necessary which is being unfolded right now. This is being observed on the Monthly Time Frame, so talking about the decrease in price, in the past 4 months Three bearish candles decreased the price of Waves by 88% while the last month was a gain of 78%. Now, this Bullish candle can be considered as a correction of the bearish wave which itself was a correction of the first wave which was bullish in nature after it was launched.
Nothing more on the Monthly Time Frame, so moving down to the Weekly Time Frame. On Weekly Time Frame, first checking out the Structures, the structure is still to the downside. The price recently flipped the most recent Demand Zone, so probably the Supply Zone is in control. Checking out the Momentum, the price of Waves did push upwards and bullish momentum was seen but overall on a macro scale, the bearish Momentum still is very strong. While it was pushing down, 13 consecutive bearish candles were observed which shows a lot of strength bears had. Both, the Momentum and structure to the downside show that only shorts positions must be preferred. The Order Flow is to the downside, Most people after strong momentum get in the reversal which most of the time fails.
Moving down to the Daily Time Frame instead of the 4 Hour time frame on Waves, because on 4 hours, there is nothing special, just a big pump which was most definitely due to the BTC influence. Now going over the Daily Time Frame, it can be seen that price recently tapped in a Hidden Order Block which was sitting within the wick. The price reacted off it beautifully. Below that there was Trendline Liquidity which got taken out and the price has now the necessary fuel. It can’t be ignored that price flipped a supply zone as well on a micro stage and also did a shift in the market structure below as it was unable to create a lower low. Talking about the invalidation point, if the level of $20.11 gets violated the whole scenario would get invalidated, while talking about the targets, the level of $13.36 can serve as a great one as the price can bounce from that as that is the last demand zone in control
