Waves price poised to retreat following 160% bull rally

Waves price is on the verge of a technical correction.
Growing selling pressure may see Waves to retest $4.6 or $4.

Waves skyrocketed nearly 160% after reaching a low of $2 in early October. However, multiple technical indicators suggest that this cryptocurrency is poised to undergo a massive downside correction before the uptrend resumes.

Waves price may retest support before moving to new highs

The TD Sequential indicator presented a sell signal on Waves 12-hour chart. The bearish formation came out in the form of a green nine candlestick, estimating that selling pressure is growing. If validated, this token may see its prices drop for one to four candlesticks.

WAVES/USD 12-hour chart

In case of the downside correction gaining traction, Waves price can slip to the initial support created by the 0.78 Fibonacci retracement level at $4.6. Moving past this local barrier, may push WAVES towards the next important area of interest, around $4, which coincides with the 0.61 Fibonacci retracement level.

WAVES/USD 12-hour chart

It is worth noting that Waves price must continue to hold above the $4 support level to retain the long-term bullish outlook. Failing to do so will trigger an extended bearish correction towards $3.7, before new buyers join the market.

However, if the $4 holds, Waves may resume the recovery and retest the current resistance of $5.3. Breaking above this area will invalidate the bearish scenario and bring $6 into focus.

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