WIF’s recent break below the critical $3.582 support level has sparked concerns across the market as bearish sentiment appears to be building. A break below this key level could pave the way for bigger losses, leaving traders questioning whether bulls can mount a comeback or if further declines are inevitable.
With downside risks increasing, this analysis aims to examine WIF's recent break below the critical $3.582 support level and explore the potential impact of this bearish turn on future price action. By assessing current market sentiment, key technical indicators, and possible areas of support, we seek to determine if WIF is poised for more losses, or if a reversal is imminent.
Check out WIF breaking below the critical $3.582 support level
According to the 4-hour chart, WIF recently broke below the $3.582 level, sparking bearish momentum as the price moves towards the $2.896 support range and the 100-day simple moving average (SMA). As the bearish trend develops, the market is closely watching for any signs of stabilization or a deeper slide towards the critical support area.
The 4-hour relative strength index (RSI) has fallen from overbought territory to 53%, indicating fading bullish momentum. This shift toward neutral territory suggests buying pressure may be waning, and market participants will be looking for signs of a sustained decline or a possible shift in momentum.
On the daily chart, the WIF is showing strong negative strength, highlighted by a bearish candlestick pattern that has pushed the price below the critical $3.582 support level. This pattern suggests that sellers are firmly in control of the market, relentlessly pushing prices lower, making further declines highly likely in the short term.
Analysis of the 1-day RSI suggests that WIF could face long-term losses as it has fallen from a high of 80% to 64%, indicating a reduction in buying pressure. Typically, such a decline indicates that bullish momentum may be waning and more downside pressure could be in the cards if the RSI continues to weaken.
Potential support areas to watch if WIF continues to fall
If WIF continues to fall, key support areas to watch out for include the $2.896 level, which has previously been a key point of price stability. Beneath this, the next support to monitor is found around $2.257, where WIF may find additional buying interest. A break below these levels could open the door for a deeper decline towards other psychological support areas.
Conversely, if WIF breaks below the $2.896 support, it could signal the start of a bullish rally that could push the price back above $3.582 and towards higher resistance points.
