$WLD Based on the recent long liquidation of at $2.20396, it indicates selling pressure has increased, potentially pushing the price lower. However, this might also present a good opportunity for traders to re-enter at a better price.
Here’s a detailed analysis.
Current Scenario.
Price Action. $WLD has witnessed a significant liquidation event, suggesting a correction in the market.
Support Level. The liquidation zone $2.20396 could act as the next short term support. If this level breaks, further downside can be expected.
Resistance Level. Immediate resistance is near the $2.30-$2.35 range, which aligns with recent high sell orders.
Buy Zone.
Ideal Entry Zone: $2.15 - $2.20
This range offers a low risk entry point, assuming the price stabilizes after the liquidation.
Targets.
1. Target 1: $2.25 Short term target based on minor resistance.
2. Target 2: $2.35 Medium-term target, aligns with the resistance zone.
3. Target 3: $2.50 Extended target for strong bullish momentum.
Stop Loss.
Suggested Stop Loss: $2.10
Place the stop loss slightly below the buy zone to minimize risk if the market falls further.
Next Steps.
1. Monitor price action near $2.20. If buying pressure emerges, this zone could trigger a rebound.
2. Watch out for the broader market sentiment, as $WLD's movement could be influenced by Bitcoin and other large cap coins.
3. If $2.20 breaks, the next support level could be around $2.00, which may offer another entry opportunity.
Risk Management Tips.
Never invest more than you can afford to lose.
Use proper position sizing e.g., only allocate 2-5% of your capital per trade.
Keep an eye on liquidation levels and market sentiment updates.
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