The WLFI currency is making headlines today after rising by more than 33% in just 24 hours, regaining key resistance levels and driven by strong trading momentum.
WLFI has finally managed to break the descending resistance line after 49 days of pressure and consolidation, and traders and investors are now looking forward to the next bullish target near $0.25, raising expectations for a continued upward wave in the coming sessions.
The breakout of WLFI sparks interest and confirms a technical reversal.
The breakout of WLFI confirms a technical reversal, indicating a renewed bullish trend and confidence among investors. This move has pushed the currency above resistance levels, which had been limiting price movements since late September.
On the other hand, this new momentum opens the door to the possibility of a rally towards $0.25, which is the upper limit of the previous trading channel. Reaching this level would represent the highest trading point for WLFI since September 22.
However, any drop below the breakout line could push the currency back towards the support level of around $0.11. Therefore, traders are closely monitoring volume and momentum indicators to see if buyers can maintain control.
In turn, technical indicators support the bullish scenario, as the MACD indicator recently formed a golden crossover, with the blue line crossing above the orange signal line, indicating a return of buying momentum and the potential for WLFI to regain an upward trajectory. The Money Flow Index (MFI) has also risen to 55.57, reflecting renewed investor interest.
Pressure on short positions amid strong buying
The recent rally has impacted traders holding short positions, leading to forced liquidations in the derivatives market. CoinGlass data shows that short positions worth $3.45 million have been liquidated over the past 24 hours.
Additional gains could increase the risk of liquidation; for example, a move to $0.168 could trigger an additional liquidation of $2.46 million. Reaching $0.184 could affect contracts worth $3.91 million, and this liquidation could increase buying pressure, thereby enhancing WLFI's upward wave.
Investors should carefully monitor key levels, as maintaining gains above breakout resistance and volume support is essential for continuing the move towards $0.25.
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At the same time, short-term traders may benefit from the current momentum, while support levels on larger timeframes will determine whether the rally will continue.
