Waves Bulls in control, Pare Losses with aims at $8.6

The Waves price is firm and bullish after corrections of early last week. Even though prices are trading inside last week’s trade range, capped below Nov 2020 highs, it appears as if bulls are exhausted and further corrections may be on the offing.

At the time of writing (Nov 30), the Waves price is trading at $6.92. It is stable on the last trading day and down in the past week of trading. However, Waves is bullish in the last month, adding 115 percent and up more than 10X year-to-date.

Waves Price Overview

While the uptrend may appear solid, bulls are flimsy and trending inside last week’s trade range. What could determine the medium-term trajectory and bull trend continuation is whether prices will overcome the liquidation level at $8.6 set on Nov 23.

The bar was bullish. Nonetheless, there was no follow-through and bear pressure of lower time frames—as evidenced by the long upper wick, spilled over to Nov 24 and throughout last week. At its bottom, the Waves price sunk to $5.5 before recovering in the second half of last week.

From the above, important levels are at $5.5 and $8.6 respectively. Break above or below these levels could signal either trend continuation reflecting gains of the first half of November, or reversal from $8.6 potentially to $4.5 or worse in the medium term.

Waves Market Movers 

The Waves protocol is one of the many smart contracting platforms. However, it differentiates itself from others outside of Ethereum because it was among the first. It is scalable and energy-efficient. 

Geared on mass adoption and ease of use, users don’t need to download the whole blockchain, therefore, saving time and resources. Besides, it has a Chrome app or HTML lite client, low transaction fees, and in recent times, waves’ focus has been on DeFi.

DeFi is one of the reasons why Ethereum price is up over 4X from early this year. 

At the moment, there is a proposal by Aleksei Pupyshev, a co-founder and developer at Neutrino Protocol, for Aave to support USDN 3 as a collateral asset and currency. 

USDN is a stablecoin pegged to the USD and backed by the Waves protocol. Staking rewards in USDN can be as high as 15 percent per annum.

The team behind Swop.fi is already working on automated staking for USDN pools.

1⃣ Our team is developing an automated staking solution for $USDN pools. Using this solution, liquidity providers will be able to collect additional yields from #staking 98% of all $USDN in each pool! pic.twitter.com/qCwC2588co

— Swop.fi 🌊 (1 ➝ 2) (@Swopfi) November 26, 2020

Moreover, USDN is accessible in the Binance Chain where the Binance DEX operates from:

As you know, $USDN stablecoin is already accessible in @BinanceChain for all basic crypto operations! We're wondering which of the chain's #DeFi platforms you use and where you'd like to see $USDN listed in the near future?😉

— Neutrino Protocol 🌊 (1 ➝ 2) (@neutrino_proto) November 24, 2020

Also, Waves’ Gravity has partnered with MADANA. Gravity is a blockchain agnostic and interoperable oracle solution. On the other hand, MADANA is leading the way in confidential computing.

We are excited to announce today that @wavesprotocol and MADANA are entering a close partnership to combine the strengths of our #ConfidentialComputing solutions and @ProtocolGravity's data #oracles and #interoperability solutions. #DeFi #Decentralization https://t.co/wjwS74TMi7

— MADANA (@MADANA_HQ) November 26, 2020

WAVES Price Prediction

The Waves price may be changing hands at May 2018 levels and nearly half of Q4 2017 highs. Whether the trend will continue depends on if bulls will overcome Nov 2020 highs.

Presently, there is a tinge of weakness as prices consolidate inside last week’s trade range.

Support and resistance levels lie at $5.5 and $8.6, respectively. Accompanying the recent Bull Run was an uptick in trading volumes. It tapered off last week but could pick either if the Waves price dips below the middle BB or rallies above $8.6—Nov 2020 highs.

From the daily chart, the region between the 50 and 61.8 percent Fibonacci retracement levels is important. It is within Aug 2020 highs or $4.8. As such this is a strong region of support that must be must be broken with above-average trading volumes. A break below the $4.8 and $5.5 zone may force the Waves price back to $3.5, the 78.6 percent Fibonacci level of the October to November 2020 trade range.

Conversely, buy trend resumption from spot levels (38.2 percent Fibonacci level) could be the foundation for a rally above $8.6 towards $12, the 1.618 Fibonacci extension level.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.