Executive Summary
WAX (WAXP) is displaying a bearish technical outlook. The price action is below key Exponential Moving Averages (EMAs), and the Relative Strength Index (RSI) indicates a lack of buying pressure. While there are short-term trades and a moderately active market making certain levels to watch, the overall trend suggests a downward trajectory, requiring a cautious trading approach.
Chart Analysis
Overall Trend
The overall trend for WAXP appears to be bearish. The price has been consistently making lower lows and lower highs, and it is trading below the 50, 100, and 200 period EMAs, which are also generally sloping downwards.
Price Action
The price action shows recent downward momentum. There have been several red (bearish) candlesticks, indicating selling pressure. The price is currently hovering around 0.00860, with recent trading activity suggesting a consolidation or a slight retest before a potential continuation of the downtrend.
Moving Averages
The Exponential Moving Averages (EMAs) are positioned with shorter-term EMAs above longer-term EMAs. Specifically, the 20-period EMA is below the 50, 100, and 200 EMAs, reinforcing the bearish sentiment. The EMAs are acting as resistance.
RSI
The RSI (14) is currently around 47.83, which is below the 50 mark. This indicates that there is more selling pressure than buying pressure, and the momentum is leaning towards the bearish side. It's not yet in oversold territory, leaving room for further decline.
Volume Analysis
The volume bars show moderate activity. There are spikes in volume during periods of sharp price declines, which is common in a downtrend. The Vol. WAXP 124.33 K figure next to the price suggests a notable trading volume, but without historical context or comparison, it's hard to ascertain if it's significantly high or low relative to its typical trading behaviour.
Fundamental & Market Data Analysis
Market Cap
The market cap for WAX is $38.9 million, ranking it 523rd. This indicates it's a mid-cap cryptocurrency.
Price Performance
- YTD: +7.78%
- 30d: +8.77%
- 7d: -3.78%
- 60d: -19.56%
- 90d: -38.00% The recent price performance is mixed, with positive 30-day and YTD gains, but significant drops over the last 60 and 90 days, aligning with the bearish chart trend.
ATH
All-Time High (ATH): $5.01 WAXP is currently trading significantly below its ATH, approximately 99.83% below it.
ATL
All-Time Low (ATL): $0.00699 The current price of ~$0.0086 is above its ATL, showing a gain of 22.46% from the ATL.
Trading Volume
- 24h Volume: $1.71 million
- 7d Volume: $22.03 million
- 30d Volume: $60.19 million
- Turnover 24h: 0.04433827
- Turnover 7d: 0.08119270
- Turnover 30d: 0.05175863 The trading volumes indicate consistent, moderate liquidity across different timeframes.
Tags
WAXP is associated with tags such as 'media, collectibles-nfts, gaming, entertainment, payments, metaverse, play-to-earn, layer-1, binance-ecosystem'. These tags highlight its focus on gaming and NFTs within the broader blockchain ecosystem.
Outlook
Short-term Outlook
The short-term outlook remains bearish. The price is struggling to break above the descending trendline and key EMAs. Unless there's a significant catalyst, we can expect WAXP to continue trading within its current bearish range or potentially test lower support levels.
Long-term Outlook
The long-term outlook is uncertain but currently predisposed to bearishness given the significant distance from its ATH and the prevailing broad market sentiment. However, WAXP's strong utility in the gaming and NFT sector could provide a foundation for future recovery, especially if the broader market turns bullish and the specific ecosystems it supports see growth.
Strategy
Short-term Strategy
A bearish short-term strategy would involve looking for opportunities to short WAXP on bounces towards resistance levels, particularly around the 20 or 50 EMA. Alternatively, waiting for a confirmed break of the current support level with increased volume could signal a further downside entry.
Long-term Strategy
For long-term investors, dollar-cost averaging (DCA) could be considered at current levels, given the asset's proximity to its ATL and its strong underlying technology in the gaming/NFT space. However, a more conservative approach would be to wait for clear signs of trend reversal and formation of higher lows and higher highs.
Key Levels to Watch
- Resistance: The EMA lines (especially 20, 50) and the descending trendline are key resistance levels to watch. The area around $0.00870 and $0.00900 could also act as psychological resistance.
- Support: The current price range around $0.00850-$0.00860 is a short-term support. A more significant support level can be found near the ATL at $0.00699. A break below $0.00850 with strong volume could lead to a move towards the ATL.