Last Time This Signal Happened WAVES Gained Over 3551%
With a 107% gain over the past 7 days, WAVES is a top cryptocurrency performance leader. The last time the RSI oscillator broke above the 50 mid-level, WAVES gained over 3551%. It's also worth emphasizing that the entire price structure from the May 3, 2021 sell-off is unfolding as a 3-wave corrective pattern.
RSI Indicator
The Relative Strength Index (RSI) oscillator has an excellent track record at calling trend reversals.
This is the first time since August 2020, when the weekly RSI momentum reading crossed above the 50 mid-level. This significant price development can call for an end of the bearish trend started with the January 2020 high.
As long as the RSI momentum readings accumulate above the 50 mid-level, we can expect the bullish trend to prevail.
ABC Pattern
On the weekly chart, WAVES' price has built a massive ABC pattern, which is corrective in nature and calls for a new major cycle to the upside.
Down from May 3, 2021 high, wave A ended at $11.42 low, and up from there, wave B ended at the $34.90 high.
Wave C can be completed between the 0.618 and 0.786 Fibonacci extension levels, between $10.97 and $16.09, respectively.
Looking forward: The next major resistance level comes around $20, where we can see a slowdown in the bullish momentum.
