⭕ WalletConnect Token (WCT) dipped 0.65% in 24 hours due to profit-taking, low liquidity, and muted altcoin demand amid Bitcoin dominance.
(empty line)
Profit-taking after recent volatility and airdrop-related spikes
Low liquidity (turnover ratio 0.557) amplified price swings
Altcoin underperformance as BTC dominance holds near 60.84%
Deep Dive
1. Market Dynamics
Bitcoin’s dominance remains elevated at 60.84% (CoinMarketCap), signaling capital rotation away from altcoins like WCT. The Altcoin Season Index sits at 35/100, reflecting weak risk appetite for smaller tokens. With 85% of WCT’s 24h volume ($33.2M) likely driven by speculative trading, the token remains vulnerable to broader market shifts.
2. Technical Context
RSI14 at 42.31 shows neutral momentum, but MACD histogram (-0.00246) signals bearish pressure
Key support at $0.3183 (78.6% Fibonacci retracement) held, but resistance at $0.3648 (38.2% Fib) capped upside
24h volume fell 5.07% to $33.2M, reducing price stability
3. Supporting Factors
Token unlock overhang: Only 18.62% of WCT’s 1B max supply is circulating, creating dilution fears
Airdrop volatility: June’s 5M WCT Solana airdrop (CoinMarketCap) led to similar profit-taking patterns historically
Competition: WalletConnect’s partnerships (Visa, Crossmint) face scrutiny about near-term token utility
Conclusion
WCT’s dip reflects sector-wide altcoin weakness and post-event volatility rather than protocol-specific issues. Monitor BTC dominance trends and WCT’s ability to hold $0.318 support. Could growing DeFi adoption offset supply inflation concerns as WalletConnect expands?
