Waves has been on a tear in the past few days, breaking out of a short-term consolidation pattern to signal that more gains are in the works. However, the price is hitting a ceiling at the top of a descending channel visible on the daily time frame.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Then again, the price has closed above both moving averages to reflect early bullish momentum and the gap between the indicators is also narrowing to signal that sellers are losing their grip.
RSI is heading higher to signal the presence of bullish momentum, but the oscillator is now in the overbought region to reflect exhaustion. Turning lower could draw sellers back in and lead to a dip to nearby support levels.
Similarly stochastic is in the overbought zone to signal that buyers could use a break. This oscillator is starting to turn lower to indicate that sellers are regaining the upper hand.
Some say that with this recent rally, Waves could make it among the top 10 cryptocurrencies in terms of market cap. This blockchain-based platform was launched in 2016, developed under the guidance of its Moscow-based founder Sasha Ivanov.
The recent run is seen to have been spurred by reports of Waves securing $120 million in a funding round to launch its private blockchain platform and system integrator Vostok. This was developed specifically for large enterprises and public institutions to form the basis of their digital infrastructure.
As its founder said:
The Vostok project lies at the intersection of several disruptive technologies, including Blockchain, Big Data, Artificial Intelligence and the Industrial Internet of Things. By implementing these in the IT infrastructures of corporations and government agencies, we lay the foundation for the digital economy. This is logic continuation of the work we have been doing over the past few years, advancing the Waves platform‘s technological achievements yet further.
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