Altcoins, Cryptocurrency, News, NFT, Price Analysis

Can WAVES Shift Narrative to Bulls’ Favor Following Recent Downturn?

WAVES ended June’s first two weeks on a downside trajectory, sliding back to its May lows, despite the brief upswing at May-end that made it appear like bulls were ready to control the space.

Meanwhile, the May-end surge had WAVES escaping the narrow range that confined it for most of May. The altcoin touched the $11.60 peak on June 1, but the bearish market dragged it over 60% lower. While writing this content, the token stood near $4.21. The drop has the coin inside a similar range to the May lows. That means WAVES retested its foothold within its current price.

Buying Momentum

Retesting the support means the asset can attract some accumulation. Buying momentum around the current price level could trigger price upswings. Moreover, WAVES dipped into the oversold region, therefore increasing the chances of buyer accumulation around current value areas. That increases the probability of an upside bounce following a support retest.

The Relative Strength Index stayed near 29.55 at this publication, following bearish actions over the past two weeks. Nevertheless, the MFI (Money Flow Index) hovered beyond 50% after dropping from the overbought territory. That means the sell-off wasn’t that severe, and selling momentum remained low. Also, the Directional Movement Index affirms that with low directional pressure.

Meanwhile, on-chain metrics show a considerable market cap drop towards the May-end level. The whale supply also declines within the past two weeks, to 45.43% from 46.98%. However, they noted a brief surge within the previous 24 hours. That meant accumulation signal at current lows.

Though WAVES lost more than 50%, it kept impressive daily NFT volumes within the past fourteen days. The crypto recorded the lowest 24hr volume on June 11, at $14.91 million. Meanwhile, the past days saw its Binance funding rate improving, indicating enhanced demand within the derivatives marketplace.

WAVES’ bearish strength eased near the foothold. Substantial accumulation around current levels would trigger an uptick for the token. Also, bulls seem ready to fight prevailing sentiments. Nevertheless, downside likelihoods remain if selling momentum and FUD stretches into the weekend.

Stay tuned for upcoming crypto updates.

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