#wct
WalletConnect Token (WCT) fell 12.16% in 24 hours due to profit-taking after a multi-week rally, overbought technicals, and cooling market-wide risk appetite.
1. Profit-taking after a 97.6% 7-day surge and 201% 30-day gain
2. Overbought RSI (77.12 on 7-day) signaling correction risk
3. Bitcoin dominance rebound (63.66% vs. 62.76% yesterday) draining altcoin liquidity
Deep Dive
1. Primary catalyst
The drop follows a parabolic rally driven by multi-chain expansion (Solana integration on May 23) and airdrop speculation (5M WCT claim for Solana users announced May 29). With WCT up 276% since its April 15 Binance listing (Pedro Gomes), traders likely locked in gains as the Fear & Greed Index retreated to 55 (Neutral) from 67 (Greed) last week.
2. Technical context
RSI-7 at 77.12 (overbought) vs. 70 threshold
Price rejected at $1.35 Fibonacci swing high (May 29)
Immediate support at $1.12 (23.6% retracement of $0.355-$1.35 move) failed
Turnover ratio of 5.78 signals thin liquidity amplifying volatility
Conclusion
WCT's dip reflects natural consolidation after vertical gains, exacerbated by Bitcoin's market share recovery. Watch the $0.97 level (38.2% Fib) for potential stabilization. Could renewed airdrop participation (5M WCT distribution pending) offset broader market headwinds?
