May update: should you buy or sell Waves (WAVES)?

The cryptocurrency market remains under pressure, the price of Bitcoin went below the $36000 price level this Friday, and the risk of further declines is still not over. Waves WAVES/USD has weakened from $42.34 below $15 since 04th May, and the current price stands around $19.

Fundamental analysis: Waves has become an important player in the global blockchain industry

Waves is an all-encompassing gateway blockchain platform that was launched in 2016 by Ukrainian-born scientist Alexander Ivanov. In a relatively short period, Waves has gone from a small startup to an important player in the global blockchain industry.

This platform enables you to create a dApp through a developer-friendly infrastructure as a testing ground for innovation. Waves is a powerful ecosystem that attracts numerous users allowing them to trade any pair of tokens without conducting a transaction through an intermediate currency.

The popularity of this project is rising across the globe, while more and more exchanges are offering this cryptocurrency. Despite this, Waves (WAVES) has collapsed from the record levels registered in the first week of May, and the risk of further declines is probably not over.

There are lots of negative news for the cryptocurrency market recently, and the concerns among traders are that it may take a long time for prices to see any recovery as the bull cycle may be over.

This Friday, the Chinese government issued a statement pledging to introduce tighter crypto regulations. Chinese Vice Premier said that he would curb the mining business in the country, which sent the market into a panic.

Before this, the Bank of China announced that digital tokens couldn’t be used as a form of payment, while Elon Musk said that Tesla would stop accepting Bitcoin as a payment method over environmental concerns.

“We believe government crackdown on cryptocurrencies can trigger another ‘crypto winter’ and reduced trading activity. Harsher crackdown on crypto is possible in many developing countries which may view crypto as a threat to their fiat currencies and monetary system,” said Harshita Rawat, an analyst from Bernstein.

The cryptocurrency market remains under pressure, and most cryptocurrencies’ prices went down to their lowest levels in months. If the price of Bitcoin falls below the $30000 support level, it would be a firm “sell” signal, and this would add further pressure to the whole cryptocurrency market.

Technical analysis: $15 represents a strong support level

The cryptocurrency market is losing its value this Friday, the price of Waves can easily back below $15 level, and probably it is not the best moment to buy this cryptocurrency.

Data source: tradingview.com

Waves (WAVES) currently trades around the $19 level, but it would be a strong sell signal if the price falls below $15 support. The next price target could be around $13 or even $10; still, if the price falls jumps above $25, we have the open way to $30.

Summary

The cryptocurrency market remains under pressure; Bitcoin went below the $36000 price level this Friday, which also negatively influences the price of Waves (WAVES). The price of Waves can easily back below the $15 level, and probably it is not the best moment to buy this cryptocurrency.

The post May update: should you buy or sell Waves (WAVES)? appeared first on Invezz.