WAVES risks 'death cross' plunge after price rallies 88% in six days
A major rally in WAVES price this week that saw it nearly double risks faltering in the coming sessions due to a "death cross" technical pattern.
A death cross measure appears when an asset's long-term moving average closes above its short-term moving average.
Notably, on the WAVES' weekly chart, its 50-week exponential moving average (50-week EMA; the red wave) jumped above its 20-week exponential moving average (20-week EMA; the green wave) in the week ending Feb. 21 — a bearish crossover.
That is WAVES' first "death cross" occurrence on a weekly chart since June 2018. In both cases, the correction in the WAVES market appeared due to selloff across the broader crypto market following a massive bull run.
As it happened, WAVES fell by up to 85% after the 2018 death cross formation, despite briefly closing above both its 20-week and 50-week EMAs in impressive but fake bullish rebound moves.
Therefore, WAVES' latest upside retracement, albeit its best weekly performance since April 2018, still treads under long-term bearish risks. As a result, a price drop below the 20-week and 50-week EMA could spell another selling round in the market.
To recap, WAVES, the native token of a blockchain platform of the same name, rallied by as much as 88% week-to-date to reach over $21 apiece during the weekend.
As Cointelegraph covered earlier, migration to Waves 2.0, partnership with interoperable blockchain service provider Allbridge, and an upcoming $150 million fund to boost Waves' growth in the U.S. served as tailwinds to WAVES upside boom.
Related: 3 reasons why Waves price gained 100%+ in the last week
But signs of correction have emerged as WAVES falls nearly 10% from its local top near $21 this Saturday.
Interestingly, the inflection
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