📌 An overview of the current situation for the currency pair $WCT
✅ The last peak (1.3928)
Reached after a significant upward momentum, then began a profit-taking phase (correction).
The retreat from the peak was quick and strong, indicating a loss of buying strength at those levels.
✅ The current support (0.5155 – 0.5187)
The price is currently moving around this area.
It is a strong support area as it is a convergence point between the low of the previous candle and the previous highest close.
✅ RSI = 45.25
Indicates a neutral area (neither a buy nor a sell saturation).
This gives flexibility for the next movement: possible corrective rise or continued decline.
✅ Trading volumes (Volume)
Huge trading volumes at the peak followed by a sharp retreat suggest strong selling distribution.
The current volume is much lower, indicating a decline in momentum and weak buyer appetite.
✅ Moving averages (MA5 and MA10)
Still very diverged (MA5 above MA10), indicating that the previous upward trend was strong.
However, the price is currently below them, which supports a scenario of continued correction.
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🟠 Possible scenarios:
1️⃣ Correction continuation scenario (drop towards 0.2756)
If the price clearly breaks the support of 0.5155 (for example, by closing a daily candle below it), buying momentum will be confirmed weak.
Then, the next target level will be 0.2756 as it represents:
🔹 Another bottom of an upward wave (clear support level).
🔹 A previously high liquidity area, may attract buyers again.
2️⃣ Rebound scenario (temporary recovery before falling)
If the price holds at 0.5155 and reversal candles appear (like a Doji or pin bar), we may witness a corrective rebound to about 0.7 before continuing the decline later.
But even in this scenario, as long as the price is below MA5/MA10, the overall trend remains bearish.
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✅ Supporting factors for the likelihood of reaching 0.2756:
🔴 Recent selling volume is very high compared to buying.
🔴 The upward momentum has completely ended after the peak.
🔴 The current support is relatively weak, especially after only one test.
🔴 Indicators (RSI at 45) give room for a larger drop before reaching the oversold area (around 30).
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📌 Summary:
💡 Based on these indicators:
🔻 It is highly likely that the price will continue to fall if the level of 0.5155 is clearly broken.
🔻 If this happens, the nearest downward target will be 0.2756.
🔻 If the support holds, we might see a temporary rebound, but it likely won’t last long unless strong buying momentum appears again.
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🔔 Recommendation:
Watch the current support (0.5155).
If it breaks with a strong candle (closing below approximately 0.51), ensure that the drop to 0.2756 will be the likely scenario.
If a clear reversal candle appears, a short corrective rebound can be considered.
