WAVES saw some ripples in its price action over the weekend after retesting the support near the USD 4.20 price level. Those ripples eventually turned into a strong bullish wave, one that propelled the altcoin to the top winners list this week.
WAVES hovered just above its current structural support around $4.20 over the weekend, following last week’s bearish performance. This is the same level at which the price found support towards the end of May. While WAVES noted some gains over the weekend, the bulls showed their strength on Tuesday.
WAVES rose to $7.20 on Tuesday after rallying at 43%. It peaked at $7.28 on Wednesday morning, before seeing a slight pullback to the press time price of $6.58. Weekly performance was still up 49% despite the slight decline.
The upswing was fueled by strong demand highlighted by the MFI. The slight pullback near its latest highs came after the price experienced some friction near its 50% RSI level.
However, WAVES’ latest achievements are more than just demand near the support line.
NFT volumes may have been the cause of WAVES’ rally
The revival of WAVES occurred around the same time that its network registered a surge in NFT trading volumes. Total NFT trading volume increased from $663k on June 17 to a peak of $8.07 million on June 19. Although it had fallen to $1.46 million by June 21, this NFT activity predated the alt’s last rally. In fact, this may have been the catalyst that caused the sharp rise in price.
However, whales’ supply does not reflect the crypto’s price action. On the contrary, it meant a certain accumulation thanks to the increase on June 17. However, it has since registered outflows.
On-chain volume increased significantly on June 21, coinciding with the strong rally on the same day.
Whale supply metric also underscores the lack of strong buying pressure this week. For these reasons, coupled with unfavorable market sentiment, WAVES may not be able to sustain its last rally.
However, this week’s bullish performance is a sign that it is starting to see healthy volumes. Especially after a mediocre performance in the second half of May.
This post WAVES is making a big splash, but here’s why volumes can matter
was published first on https://ambcrypto.com/waves-makes-a-big-splash-but-heres-why-volumes-could-be-key/