DWAC stock price was at $12.92 with a decrease of 4.30% in Friday’s trading session wherein trading volume remained below the average trading volume. Digital World Acquisition Corp (NASDAQ: DWAC) stock price fell 81.93% in one year and recorded its new 52-week low on 16 March 2023. This indicates that DWAC has lost its investors’ confidence.
The formation of the bullish inverted hammer candlestick pattern on Monday’s trading session suggested a bullish reversal or short-term downtrend reversal. This gave hope to investors that DWAC stock price may break its downward trend and start its recovery. However, the formation of the bearish spinning top candlestick pattern in the next trading session showed that the market was indecisive.
Both bulls and bears were active in the session. The bulls were driving the price up, which is seen by the long upper shadow, while the bears were driving the price down, which is indicated by the long upper shadow. However, neither could not gain an upper hand over the other and hence the session ended with the opening price and closing price of the stock being close to each other as shown by the small body.
If the DWAC stock price wants to recover, it has to gain the confidence of investors as well as the buyers’ support to break out from the downward slope trend.
More About Digital World Acquisition Corp
Digital World Acquisition Corp is a special purpose acquisition company (SPAC) established to explore potential merger, acquisition, or business combination opportunities with one or more companies, including the capital stock exchange, asset purchase, re-organization, or similar transactions. The primary focus of the company is on identifying and engaging with healthcare industry businesses based in the United States. As of now, the company has not commenced any operational activities or generated any revenue.
DWAC Stock Price Technical Analysis
According to technical indicators, DWAC stock price may show a downward movement. The Relative Strength Index (RSI) is decreasing in the overbought zone and is showing the possibility of a negative crossover over the daily time frame chart, which indicates that the sellers are accumulating and pushing DWAC downwards.
Essentially, the present bearish influence is strong. The current value of RSI is 37.43 which is above the average RSI value of 33.11. The MACD and the signal line are intersecting but stranded near zero over the daily chart, which does not provide any evidence that can support the RSI claims. Investors need to watch every move over the charts during the day’s trading session.
The technical indicators have maintained their sell signal on the DWAC stock price, which gives the signal to long traders to close all their trades in the market.
Summary
On Friday’s trading session, the DWAC stock price saw a decline of 4.30% and closed at $12.92, with trading volume lower than the average. The daily chart reflects the fact that DWAC stock has lost investor confidence. The market displayed indecision with the formation of a bearish spinning top candlestick pattern in the subsequent trading session. The reduction in trading volume signifies lack of trust among traders in the DWAC stock price.
The technical indicators reveal that the RSI is currently declining in the overbought zone, indicating the possibility of a negative crossover, showing a strong bearish trend. Traders are advised to proceed with caution when making trades in the market.
Technical Levels
Resistance Levels: $16.10 and $22.11
Support Levels: $14.25 and $12.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/25/dwac-stock-price-prediction-will-dwac-recover-or-continue-falling/