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YEREVAN (CoinChapter.com) – WAX NFT platform’s native token WAXP (former WAX) price traded at $0.068 ahead of the New York session on Jan 19. Notably, the digital asset’s value saw a 25% intraday jump and could continue the bullish push into the upcoming session. Here’s why.
WAX charts optimistic
The WAXP token has traded within a formation dubbed the ‘descending triangle’ since May 2022 and arrived at a crucial resistance on Jan 19. In detail, the formation features two down-sloping parallel trendlines with a significant mid-range, shown on the chart below. They connect the swing highs and lows, maintaining relevance through consecutive retests.
Notably, the setup does not predict a future bias. But it can be instrumental for short-term predictions, for as long as the asset fluctuates within the channel.
WAX price hit the channel’s support on Dec 30, 2022. The token then followed Bitcoin’s bullish lead, rallying 50%. However, WAXP then retested the channel’s midrange twice on Jan 14 and 19, unable to break above it with any confidence. However, the charts printed several bullish cues, hinting at a short-term continuation.
Bullish cues for WAX Price (WAXP)
As a result of the recent bullish push, WAXP traded above its 20, 50, and 100-day exponential moving averages (EMA). Moreover, a golden cross between EMA- 20 and 50 is in the books, boosting WAXP’s chances for another leg up.
In short, the golden cross occurs when a short-term MA crosses over a long-term MA. The formation persists for as long as the short-term MA maintains a dominant position. The crossover is a consequence of the price action rather than the reason behind fluctuations. However, it can provide additional assistance to the WAX NFT token.
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Moreover, growing trading volumes back the bullish scenario. If WAXP follows the bullish cues, the next target will stand above the aforementioned mid-range at approximately $0.073. If not, the next support would stand at the intraday low of $0.055.
NFT sales dropped – WAX blockchain in trouble?
As a Web3 platform, NFTs remain an important part of the ecosystem for the WAX blockchain. However, the NFT sector saw heavy losses in the previous year, which could also damage the WAX NFT prospects.
According to data compiled from “Non Fungible,” the volume of NFT sales has dropped 83% year-over-year from January 2022 to January 2023. 2022 brought the industry nearly $3 billion in sales, while the same period the next year resulted in less than $500 million.
The gaming sector was not an exception. NFT Games are still popular. However, the sector was hit hard by the crypto price avalanche. The revenue dropped 90% from 2022’s $360 million to only $36 million.
Also read: Bitcoin outperforms Gold in 2023 so far – bullish reversal, or dead cat bounce?
Despite the dropping NFT sector, the WAX blockchain found an alternative solution and launched its “WAX DeFi epoch.”
Bullish cues predict another push for the WAX blockchain. However, the token still traded nearly 95% below its all-time high, dampening the hopes for a full recovery. Thus, potential investors should closely watch the broader market for additional cues and Bitcoin charts for a general bias for WAXP.
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