WAL Technical Analysis Feb 6

WAL dropped sharply by 6.15% in the last 24 hours to the $0.08 level, triggering an RSI of 27.60 indicating the oversold region – is this an opportunity for bottom hunters or a victim of Bitcoin’s dominant downtrend?

Market Outlook and Current Situation

The WAL market is having a tough day in the shadow of the selling wave in the overall crypto ecosystem. With the current price stabilizing at the $0.08 level, the 24-hour change was -6.15%, and trading volume reached $24.57 million. The daily range is squeezed between $0.07 – $0.09, indicating high volatility but a direction clearly focused downward. As the downtrend becomes dominant, WAL’s short-term outlook is pessimistic; however, the increase in volume signals that selling is intensifying and could indicate potential base formation.

In the general market context, altcoins are being crushed in Bitcoin’s shadow. WAL continues to stay below the EMA20 ($0.11) in recent weeks, maintaining its bearish short-term structure. Multi-timeframe (MTF) analysis identified 12 strong levels: 1 support/2 resistances on 1D, 2S/2R on 3D, and 3S/3R confluences on 1W. These levels emphasize that if WAL tests the critical $0.0683 support, it could open the door to a deeper correction. While the volume increase reflects panic selling, as detailed on our WAL spot analysis pages, liquidity flows are worth monitoring.

Market sentiment is focused on technical factors in an environment where news flow is calm. While WAL’s tokenomics structure and ecosystem developments are supportive in the long term, it needs a strong catalyst to break the short-term downtrend dominance. The 6% loss in the last 24 hours signals the end of the altcoin rally, but oversold conditions keep recovery hopes alive.

Technical Analysis: Key Levels to Watch

Support Zones

The most critical support level stands out at $0.0683 (strength score: 70/100), showing strong confluence across 1D, 3D, and 1W timeframes. When WAL’s price approaches here, reactive buying has been seen multiple times in the past; for example, this zone served as a base in previous corrections. In case of a breakdown, lower supports from MTF analysis will come into play, potentially enabling a test around $0.05. This support should be monitored as the key point to halt WAL’s current downtrend – volume increase here could signal holding.

The strength of support zones is also confirmed by Fibonacci retracements; the 0.618 level aligns exactly with $0.0683. Investors can evaluate long position opportunities around this level on WAL futures platforms, but stop-losses are critical.

Resistance Barriers

The first resistance is positioned at $0.0950 (score: 61/100), reinforced by the Supertrend indicator’s bearish signal. Breaking above here will be the first test for a short-term trend change. Higher up, $0.1954 (same score) forms a strong barrier; this level overlaps with the EMA50 on the 1W timeframe, providing double confluence. WAL must break both resistances to recover, otherwise the $0.11 EMA20 resistance will remain dominant.

The strength of resistances has been tested in past breakout attempts; for example, it was rejected at $0.0950 during the January rally. These barriers stand as the main obstacles limiting WAL’s upside potential.

Momentum Indicators and Trend Strength

RSI at 27.60 is in the oversold region (below 30), which is a classic bounce signal but should be interpreted cautiously in the downtrend context. Historically, RSI in the 25-30 range on WAL has signaled bottoms, but the MACD’s negative histogram and bearish crossover confirm momentum still favors sellers. In the EMA hierarchy, the price is stuck below EMA20 ($0.11), reinforcing the short-term bearish structure.

The Supertrend indicator is in bearish mode and highlights the $0.11 resistance. On MTF, the 1W Supertrend is also downward, confirming trend strength with the MACD histogram expansion. While momentum indicators generally show selling pressure, if RSI divergence forms (RSI holds higher while price makes new lows), a reversal signal could emerge. Looking at the volume profile, selling volume overwhelms buying, and OBV (On-Balance Volume) decline supports the downtrend.

Risk Assessment and Trading Outlook

The risk/reward ratio is unbalanced in the current setup; the bullish target of $0.1469 (score: 30) is low probability, while the bearish target of $0.0123 (score: 22) looks more realistic. Risk increases if the $0.0683 support breaks, with R/R potentially worsening to 1:3. On the other hand, with oversold RSI, a close above $0.0950 turns reward to the upside. Balanced outlook: Selling pressure continues short-term, but BTC stabilization could relieve WAL.

Volatility is high; for long/short positions, $0.0683 stop with $0.0950 target is logical. For long-term holders, there’s a bottom-hunting opportunity, but market-wide risks dominate. This analysis, taking into account WAL spot market dynamics, has been prepared with risk management essential in every scenario.

Bitcoin Correlation

WAL is directly affected by Bitcoin’s 6.08% drop to the $66,266 level; altcoins typically decline more sharply in BTC downtrends. BTC’s main supports are $65,881, $62,910, and $60,000 – if broken, WAL quickly tests $0.0683. Resistances are $68,501, $72,176, and $79,708; if BTC recovers above $68,500, it triggers WAL movement to $0.0950. With BTC Dominance and Supertrend bearish, altcoin caution mode dominates, limiting WAL’s independent movement room.