WLD Technical Analysis Feb 1

WLD, with RSI at 37 approaching the oversold region, continues bearish momentum with a negative MACD histogram; trading below short-term EMAs confirming the downward trend.

Trend Status and Momentum Analysis

WLD is exhibiting strong downward momentum at the current $0.40 level. With an 8.75% drop in the last 24 hours, trading in the $0.36-$0.44 range, volume of $258.25 million confirms selling pressure. The overall trend is downward, with the Supertrend indicator giving a bearish signal pointing to $0.57 resistance. Momentum oscillators, particularly the bearish configuration of RSI and MACD, suggest potential for further decline before any short-term recovery signal. The EMA ribbon structure also indicates weak trend strength, while multiple timeframes (MTF) identified 10 strong levels: 1D with 1 support/3 resistances, 3D with 1 support/2 resistances, and 1W with 1 support/3 resistance confluence. This increases compression within the descending channel and breakdown risk. Rising volume supports the distribution pattern, emphasizing momentum in favor of sellers.

RSI Indicator: Buy or Sell?

RSI Divergence Analysis

RSI (14) is currently positioned at 37.21, indicating a neutral-bearish zone approaching the oversold threshold below 30. No regular bearish divergence is observed on the daily chart; as price makes new lows, RSI tests similar lows, showing selling momentum remains healthy. In the search for hidden divergence, the absence of a mild bullish signal on the short-term 4-hour chart stands out – if price breaks $0.3840 support, RSI could decline to 25. Weekly RSI is stuck around 45, reflecting overall trend weakness. Comparing with Stochastic for divergence confluence, momentum oscillators reinforce sell signals; for early recovery, RSI needs to break above 50.

Overbought/Oversold Regions

The 37.21 RSI value signals entry into the oversold region (below 30), but indicates momentum has not exhausted. In the past at similar levels (below $0.40), WLD experienced 20-30% pullbacks; at the current position, a short-term bounce is possible but carries high fakeout risk if volume-less. The overbought region (above 70) is distant, and looking at the RSI ribbon to measure trend strength, lower bands dominate – this forecasts continuation of the bear market.

MACD Signals and Histogram Dynamics

MACD is in bearish position; signal line below MACD line and histogram expanding in the negative zone. This shows momentum shifting and accelerating toward sellers – the size of histogram bars confirms the 8.75% drop in the last 24 hours. On the daily chart, zero line crossover is downward, with a similar pattern dominant on the 3D timeframe. Histogram expansion instead of contraction signals increasing trend strength; for a potential bullish crossover, histogram needs to approach zero. Confirmed by volume, no MACD divergence – bearish structure aligned with price suggests momentum will continue to $0.3840 support. For short-term traders, watch for histogram contraction; this could herald a potential reversal.

EMA Systems and Trend Strength

Short-Term EMAs

WLD is trading below EMA20 ($0.49); this clarifies short-term bearish bias. Ribbon narrowing between EMA10 and EMA20 shows momentum loss, but remaining below price supports selling. On 4-hour, approach to EMA50 ($0.45) forms dynamic resistance – if no breakout, downward continuation.

Medium/Long-Term EMA Supports

Medium-term EMA50 ($0.52) and EMA200 ($0.65) are strong resistances; trading below confirms death cross. Ribbon dynamics show weak long-term trend strength – EMAs fanning downward. Around $0.3840, confluence with EMA100 is critical support; if broken, deepening to EMA200 possible.

Bitcoin Correlation

BTC at $78,242 with 5.95% drop in downtrend; Supertrend bearish signal warns caution for altcoins. WLD shows high correlation with BTC (0.85+); if BTC loses $77,966 support, WLD $0.3840 breakdown accelerates. BTC resistances at $80,254 and $83,160; recovery here could create opportunities for WLD in WLD Spot Analysis, while for leveraged positions in futures, follow WLD Futures Analysis. Rising BTC dominance will suppress WLD momentum.

Momentum Outcome and Expectations

Momentum confluence is bearish: despite RSI 37 approaching oversold, negative MACD expansion and price below EMA strengthen downtrend. Short-term, $0.3840 support may be tested (score 79/100); if holds, bounce to $0.4140 retrace (75/100), if broken, $0.0652 bearish target (21 score). Bullish scenario at $0.7351 (31 score) distant; requires RSI 50+ and MACD crossover. Volume distribution confirms selling, while MTF resistance abundance limits rallies. Traders should monitor momentum oscillators for risk management.