• Waves is bullish in the short-term with the pair currently retracing lower after a strong upside rally
• Four-hour and Daily time frames show the pair trapped within a descending wedge pattern
• The cryptocurrency finds itself at a critical juncture in the medium-term

Waves / USD Short-term price analysis

In the short-term, Waves is bullish with price still holding above its 50-period moving average on the four-hour time frame. It is worth noting, the Waves / USD pair has been gradually retracing lower, following its recent rally.

Price is still creating bullish higher highs and lower lows, with the pair falling back inside a bullish descending wedge pattern on the four-hour time frame.

Technical indicators appear to be getting ready for the next strong directional move in the Waves / USD pair.

Waves / USD H4 Chart                                           (Source: TradingView)

Pattern Watch

Aside from the previously mentioned wedge pattern, traders should watch for price to continue to make higher highs and higher lows. If this dynamic changes, we could see the pair losing its short-term bullish status.

Key Moving Averages

The 50-period moving averages on the four-hour time frame is currently offering strong support, an actual decline below this area will shift the pair’s short-term bullish outlook.

MACD

The MACD indicator is correcting higher and showing a slight bullish bias on the four-hour time frame.

RSI

The Relative Strength Index is attempting to recover higher; traders should watch this indicator if it starts making bullish higher highs.

Waves / USD Medium-term price analysis

In the medium-term, Waves remains technically bullish with a Golden Cross still in progress on the daily time frame.

Recent bullish momentum has started to subside, with price now trading back inside a bullish descending wedge pattern on the daily time frame, which mirrors the action on the four-hour time frame. A sustained break above the bullish wedge would likely provoke a test of the rising trendline on the daily time frame.

A worrying development for the Waves / USD pair is bulls inability to keep price above the cryptocurrencies 50-day moving average, which is a key-sign of overall strength.

Waves / USD Daily Chart                                                       (Source: TradingView)

Pattern Watch

Traders should carefully monitor the descending wedge pattern on the daily time frame, especially for a sustained technical break above the bullish pattern.

RSI Indicator

The Relative Strength Index is neutral with a slight bullish bias; traders should carefully watch this indicator around current levels.

Moving Averages

Technical failure below the pair’s 50-day moving average supports the idea that price may eventually fall towards its 200-day moving average, for a major test of overall buying interest over the medium-term.

Conclusion

Waves is trading at a critical juncture with a technical breakout in either direction close by; the daily time frame currently offers a more reliable guide to the pair’s next breakout move.

The bearish case supports a move towards the pair’s 200-day moving average, while a bullish breakout above the wedge pattern may provoke a strong move towards the rising trendline on the daily time frame.