WIF’s recent decline below key support at $3,582 has sparked concerns across the market as bearish sentiment appears to be intensifying. A break below this key level could pave the way for even greater losses, leaving traders wondering whether the bulls will manage to rally or whether further declines are inevitable.
As downside risks enhance, this analysis aims to examine the recent decline in WIF below the critical support level at $3.582 and explore the potential implications of this bearish turn on future price movement. By assessing current market sentiment, key technical indicators and possible support zones, we try to determine whether WIF is set for greater losses or whether a reversal may be on the horizon.
Exploring WIF falling below the critical support level at $3,582
On the 4-hour chart, WIF recently dropped below the $3.582 level, triggering bearish momentum as the price approaches the $2.896 support range and the 100-day uncomplicated moving average (SMA). As a bearish trend develops, the market is closely watching for any signs of stabilization or a deeper move towards key support zones.
The 4-hour relative strength index (RSI) fell from the overbought zone to 53%, signaling a slowdown in growth momentum. This move towards neutral territory suggests that buying pressure may be easing and market participants will be looking for signs of further decline or a potential change in momentum.
On the daily chart, WIF is showing forceful negative strength, highlighted by a bearish candle pattern that has pushed the price below the critical support at $3,582. This pattern indicates that sellers have a firm grip on the market, constantly lowering the price, making further declines likely in the near future.
Analysis of the 1-day RSI suggests that WIF may suffer long-term losses as it has fallen from a high of 80% to 64%, indicating a reduction in buying pressure. Typically, this decline indicates possible weakness in bullish momentum, with more downward pressure likely if the RSI continues to weaken.
Potential support zones to watch if WIF continues to decline
If WIF continues to fall, the key support zones to watch will be the $2.896 level, which has previously acted as a tipping point for price stabilization. Below this, the next support level to monitor is around $2.257, where WIF may find additional buying interest. A break below these levels may open the way to further declines towards other psychological support zones.
Conversely, if WIF breaks the support level at $2,896, it could signal the beginning of a bullish reversal, potentially pushing the price back above the $3,582 level towards higher resistance points.
