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Waves (WAVES) recently saw a major rally, going up by around 88% in only six days, which attracted a lot of attention from the cryptocurrency community. However, while rallies are usually a highly positive thing for digital coins, this one actually brought concern that a ‘death cross’ might appear.
As some may know, a death cross measure makes its appearance when the long-term moving average of an asset closes above its short-term moving average. In Waves’ case, the coin’s 50-week EMA pushed past its 20-week EMA in the week that ended with February 21st.
This marked a bearish crossover, or a death cross, as it is also known, and it made many of the WAVES holders and traders concerned about the coin’s price and future. Not to mention that it has been Waves’ first death cross seen on a weekly chart in nearly three years, since the last one was in June 2018.
Following the massive rally back in 2018, WAVES started seeing major sell-offs that resulted in an 85% crash. Now, as it rallied by 88%, many expect something similar to happen once again, so a massive sell-off is not out of the question in days to come.
WAVES in 2022
Waves has seen quite a bit of volatility in 2022, despite the fact that we have just entered the third month of the year. It saw its last big rally in October 2021, when it reached a resistance at $32. After that, its price kept crashing, and once the new year arrived, WAVES started the year with a price of $14.8.
The first few days of the year brought a short period of stability for some coins, and a small recovery for WAVES, allowing it to grow back to $16. However, it wasn’t long before the coin dropped, and it broke its support level at $14, which then became a resistance.
WAVES then spent a week trying to breach it, finally managing to do it on January 12, but it was stopped by a resistance at $15 next, and this one rejected its price all the way down to a support at $8, almost cutting the coin’s price in half. Around January 26th, WAVES price saw a sudden spike up from barely above $8 to $11.4, and then it dropped just below $10.
After briefly trying to fight its way past $10 for a few days, the coin slowly dropped back down towards $8. But, things seemingly started taking a turn as February started, allowing the coin to recover to $11, and then to $12 on February 9th. It did not stay at this level for long, however, and its price was quickly rejected down to a support at $9, and for the next few weeks, Waves kept growing and dropping, finally finding its bottom at $8.5.
Then, on February 24th, 2022, Waves started to grow.
WAVES’ rally leads to a new YTD high
On February 24th, something happened, and WAVES price started to grow. It first encountered a resistance at $9.5 which did stop its progression, but only briefly. After that, the coin once again surged to $12, and it seemed that its price will be stopped and rejected once again. This did actually happen, with the coin briefly dropping towards $11.
However, after hitting $11.3, WAVES suddenly bounced back up, skyrocketing bast every resistance previously seen in 2022, hitting $19 on March 1st. The price growth was actually stopped by a resistance at $18, but WAVES’ momentum allowed it to rush past this level. After a few days of trying to breach it, the coin succeeded and it hit $20.52 on March 4th. After that, however, it corrected yet again, dropping below $18, which is where we find it right now, at the time of writing, as it sits at $17.85 after a 13.6% crash.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.