Crypto market sentiment falls to a monthly low

Waves is an all-encompassing blockchain platform aimed at making open finance more accessible to regular users on a day-to-day basis. It enables the creation and trading of crypto tokens without requiring extensive smart contract programming. Instead, tokens can be created and managed using scripts that operate within user accounts on the Waves blockchain.

The WAVES cryptocurrency plays a crucial role in the Waves ecosystem, as it can be used to create custom tokens and pay for transaction fees. The total supply of WAVES tokens is capped at 100 million, and ownership of WAVES grants users a share of the fees paid for transactions.

Waves (WAVES) has dropped more than 20% since August 05, and the risk of further decline is still present. Federal Reserve Bank of St. Louis President James Bullard recently indicated his openness to another large interest rate hike at the central bank’s September meeting, which negatively impacted both stocks and cryptocurrencies. Investors are concerned that an aggressive rate hike could trigger another sell-off, and Waves, along with many other cryptocurrencies, may face increased volatility leading up to U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium in Wyoming.

Since mid-November, the crypto market has lost more than half of its value, and all eyes are now on Bitcoin to see if it can maintain its support level at $20,000. American investor Jeffrey Gundlach has suggested that he wouldn’t be shocked if Bitcoin were to fall to $10,000, and it’s quite possible that the crypto market will continue to decline in the near future.

Recent surveys show that the crypto market sentiment has reached a monthly low, putting it dangerously close to entering the extreme fear territory. Market sentiment is a crucial gauge as it reflects investor emotions toward the market as a whole.

Waves (WAVES) technical analysis

After reaching recent highs above $6.6 on August 15, Waves (WAVES) has dropped over 20%. The price has since stabilized above the $5 support level, but if it breaks below this, WAVES may test the $4.5 price level. In the chart (from March 2022), I’ve marked key support and resistance levels that can help traders anticipate potential price movements. From a technical standpoint, WAVES is currently in a “bearish phase,” but if the price moves above $8, it could signal a reversal in the trend, with the next target around $10. The critical support level to watch is $4, and if it breaks, it would be a strong “SELL” signal, possibly leading to a drop to $3.5.

Factors supporting an increase in Waves (WAVES) price

While trading volume for WAVES has decreased over the past few days, if the price rises above the resistance level at $8, the next target could be around $10. It’s also important to consider that WAVES is closely tied to Bitcoin’s price, so if Bitcoin surpasses $25,000, we could see WAVES move to higher price levels.

Indicators of potential decline for Waves (WAVES)

Waves (WAVES) has fallen more than 20% since August 05, and the risk of further price decline remains. The recent survey revealed that crypto market sentiment has hit a monthly low, putting it close to the extreme fear territory. WAVES’ current support level is $5, and if the price falls below this level, it would trigger a “SELL” signal, potentially bringing the price to $4.5. If WAVES dips below $4, which represents a strong support level, the next target may be $3.5 or lower.

Analysts’ and experts’ price projections for Waves (WAVES)

With inflation at its highest in 41 years and aggressive monetary tightening policies expected from global central banks, experts predict that risk-on assets such as stocks and cryptocurrencies may continue to lose value. Recent survey results show that crypto market sentiment has reached a monthly low, positioning it dangerously close to extreme fear. Jeong Seok-moon, head of the South Korean exchange Korbit, stated that the crypto winter could end before the end of 2022 but expects U.S. Federal Reserve’s attempts to tackle high inflation to continue impacting crypto markets in the meantime. American investor Jeffrey Gundlach believes that Bitcoin could potentially drop to $10,000, and it’s highly likely that the crypto market will continue to decline in the upcoming days. Bearish traders holding positions in Waves (WAVES) can feel confident that the downtrend will persist unless the cryptocurrency sets a new higher high. Additionally, the price of WAVES is tied to Bitcoin, and should Bitcoin fall below the $20,000 support level, new lows for WAVES could emerge.