WLD Plummeting Alert! Smart Money Withdraws En Masse, Is the 0.86 Support Level in Jeopardy?
Currently, WLD is in a downtrend, with a price of 0.86 below MA200 and the holding cost. The Bollinger Band position at 18.59% is close to the lower band, RSI is neutral but weak, trading volume is shrinking, and the order book shows strong buying interest but significant nearby selling pressure. It is advised to short in the short term, targeting 0.857, with a stop loss at 0.8736, and a risk-reward ratio of 0.22:1. Risk: A liquidity gap may amplify volatility; if it breaks 0.8736, the strategy will fail, and position size should be <2% during low liquidity periods.
Technical Analysis:
1. Price State: The Bollinger Band position at 18.59% is close to the lower band, indicating overselling risk; MA200 is deviated -3.63%, price is under pressure; holding cost is deviated -2.97%, showing accumulation of losing positions.
2. Market Strength: 24-hour trading volume is slightly lower at 0.95, price fell 1.38% accompanied by reduced volume, indicating continued weakness; open interest is decreasing, funding rates are negative, with smart money leaning bearish; no significant news impact.
3. Key Levels: Support at the Bollinger Band lower band 0.8569 (weak liquidity), resistance at MA200 0.8924; seller liquidity concentrates above 1.09, the buy-sell pressure ratio is 1.51x stronger on buying but nearby sell orders are high (-74981.96), potentially triggering further declines.
Market Cycle Analysis:
In the mid-bear market, long-term price has dropped 52.72% annually, with continuous outflows from positions, and the downtrend remains unchanged.
Trading Strategy:
• Entry Point: 0.86 (current price, point of continued weakness)
• Stop Loss Point: 0.8736 (Bollinger Band upper band resistance)
• Target Level: 0.857 (Bollinger Band lower band support)
• Risk-Reward Ratio: 0.22:1
Risk Warning: Market risks include liquidity gaps that may amplify declines or unexpected rebounds; strategy will fail if price breaks 0.8736; during operations, single risk < total capital 2%, avoid low liquidity periods during Asian trading hours.
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