Bulls Force Waves Past $2 Once Again – Can They Reach June Highs?

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Waves has been performing incredibly well on the price chart since mid-June.
• It looked like the WAVES bulls had one more leg up, as evidenced by the steady buying pressure over the past few days.

Waves [WAVES] bulls made a remarkable move on the price chart at the end of June. After a downward trend since the beginning of March, the bulls exploded onto the scene. From June 15, the price of WAVES started to slowly increase.

read waves’ [WAVES] Price Forecast 2023-24

On June 24, WAVES soared from $1.55 to $2.89, a 1-day gain of nearly 87%, before sinking into a pullback. Over the past week, the token’s price consolidated around $1.9 before climbing back to the $2.15 region.

Waves had a strong bullish outlook, but could it be too early for another run?

Source: WAVES/USDT on TradingView

The $1.3 to $2.89 pump was used to plot a series of Fibonacci retracement levels. In the past two weeks, WAVES returned to the 61.8% level at $1.9. It dropped to a low of $1.78 on June 30. At the time of writing, WAVES’ market structure was once again bullish on the 4-hour chart after moving above USD 1.99. The RSI also showed bullish momentum.

The OBV has also been in an upward trend since June 26, although WAVES itself saw a pullback. This was a strong sign that the bulls were gearing up for another upward move and rallied the token in anticipation. Unlike the OBV, the CMF showed that capital flows have largely been routed out of the market since June 26.

The 1-day chart showed that the $2.14 level was a previous lower high from late May. The rally above this level meant that the market structure was also bullish on the daily time frame. Hence, swing traders can build long positions in the $1.9-$2.1 region, targeting the local high of $2.89. More ambitious bulls can wait for a move to the 23.6% extension level at $3.26.

One question that remained was, have the WAVES been gathering long enough to warrant such an outburst of bullish sentiment? WAVES traded in the $1.83-$2 region from July 1 to July 6, less than a full week. Were the bulls already looking for another move north by at least 40%? Possibly not, which is why swing traders should be careful about their positions.

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The huge increase in Open Interest indicated strong bullish sentiment

Source: Coin analysis

According to Coinalyze data, Waves’ OI has almost doubled in the past 24 hours, from just over $30 million to $59.8 million. This too happened in a short period of time, indicating a huge inflow of capital into the futures market.

Still, the spot CVD on the 1-hour chart has seen a negative slope in recent hours. Could this point to an altcoin music chair, with coins seeing a strong, random rally before sinking lower? It was still unclear. The available evidence points to further bullishness, and the OBV reinforced the idea that buyers remained dominant.