NAIROBI (Coinchapter.com) – WAVES exhibits a double bottom pattern on its daily trading chart, suggesting a possible trend reversal. The price of WAVES today stands at $2.39, marking a slight decrease of 2.15% over the last 24 hours, yet up 15.30% from its weekly low of $2.07.

WAVES/USD price chart. Source: TradingView

According to the 1-day chart analysis, Waves has formed a Double Bottom pattern, a bullish reversal signal that often precedes a price surge. This formation is characterized by two consecutive troughs at roughly the same price level, followed by a rally that exceeds the resistance level between the two bottoms.

Waves price action hints at a bullish reversal with a possible double bottom pattern. Two lows formed at roughly $2.0, followed by a price increase. This suggests buyers may be entering the market, potentially reversing the downtrend. Traders watch these patterns for signals of a shift from bearish to bullish.

If WAVES can break and sustain above the $2.60 resistance level, marked by recent highs post the formation of the second bottom. Overcoming this barrier could set the stage for a move towards $3.40, offering substantial profit opportunities. However, a failure to advance might see WAVES testing its support levels again, emphasizing the importance of setting appropriate risk management strategies.

WAVES Double Bottom Pattern: Promising On-Chain Metrics

Waves’ on-chain metrics reveal positive network growth and adoption. Over the past 30 days, transaction fees totaled $25,093, indicating healthy utilization. Notably, the stablecoin market cap surged by 362.73% to $3.26 million, suggesting increasing demand for stable digital assets. Additionally, the decentralized exchange (DEX) volume rose 49.19% to $707.93K, reflecting growing interest in trustless trading platforms.

Waves’ total value locked (TVL) dipped 13.12% to $13.20 million. However, this investment still shows strong backing for Waves’ DeFi protocols. On-chain indicators, taken together, paint a promising picture. They suggest network growth and adoption, potentially bolstering the bullish case for Waves.

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Filed under: Bitcoin - @ May 8, 2024 2:22 am