DWAC Stock Price is Highly Oversold at 52-Weeks Low

DWAC stock price has plunged more than 16% in a month and might initiate its recovery if it breaks out of the neckline.
Digital World Acquisition Corp (NASDAQ: DWAC) stock is performing near its 52-weeks low after plummeting almost 80% in a year.
DWAC shares have been trying to accumulate the confidence of investors to mark its return.

DWAC stock price has been slipping since March 2022 and fell till 52-weeks low now DWAC might sustain for a rebound. DWAC share price needs to recover itself from the downward sloping line to initiate its recovery phase over the charts. Digital World Acquisition Corp (NASDAQ: DWAC) stocks have been underperforming since last year due to several factors and lost confidence from investors.

Sellers have been barging the DWAC stock price to drag it below its 52-weeks low. Meanwhile, DWAC share price must break out of the downward sloping line to register its recovery phase over the charts.

About Digital World Acquisition Corp (NASDAQ: DWAC)

A special purpose acquisition company (SPAC) called Digital World Acquisition Corp was established in 2020 with the intention of acquiring and merging with a private technology business in order to make it publicly traded. Meg Whitman, a former CEO of Hewlett Packard Enterprise, and Gary Cohn, a former CFO of Goldman Sachs, established the business.

In November 2020, Digital World Acquisition Corp. earned $300 million through its IPO. The ticker symbol for the business is “DWAC” on the NASDAQ.

When Digital World Acquisition Corp. revealed in October 2021 that it would be joining forces with the social media network Trump Media & Technology Group (TMTG), which was established by the late U.S. President Donald Trump, the news generated considerable attention. TMTG is anticipated to become a publicly traded business after the merger, with an estimated value of $1.6 billion.

It’s important to remember that SPACs like Digital World Acquisition Corp have generated debate in the financial community, with some detractors voicing issues about their potential for speculative investment and lack of transparency.

DWAC stock price was at $12.51 and has lost 5.58% of its market capitalization during Wednesday’s trading session. Trading volume is above average showcasing the accumulation rate of sellers. Buyers need to come forward to save DWAC stocks from falling from 52-weeks low.

DWAC stock price must surge out from the negative sloping line in order to initiate its recovery over the daily time frame chart. Investors in Digital World Acquisition Corp (NASDAQ: DWAC) stocks need to wait until the share price initiates its recovery by mid 2023.

The Slaughtering Past of DWAC Stock Price (NASDAQ: DWAC)

Meanwhile, DWAC stock price has slipped below 20, 50, 100 and 200-days Daily Moving Average. The DWAC stocks have been bleeding and this can be observed over the daily time frame chart as DWAC shares slipped the most during 2022 and have been losing since then.

DWAC share price has lost around 12.94% in the last week whereas 16.32% in the last month. In continuation, the quarterly report of DWAC stock has been negative with a 42.38% drop in DWAC share price.

The start of 2023 has also been underperforming for DWAC stock price as DWAC has lost around 18.29% year to date.

Financial analysts claimed Digital World Acquisition Corp (DWAC) stocks to be the most speculative shares. Due to some traits regarding the investments being made in DWAC and about its potential.

Will DWAC Stock Price Reach $30 Ever?

DWAC stock price must acquire the attention of investors in order to try for a successful trend reversal. However, volume change must be shot up during Thursday’s trading session.

Analysts have also provided some levels to be attained by DWAC share price during 2023 if it follows up the recovery path. DWAC stock price must reach $17.05 and breakout to reach $22 secondary resistance level. Moreover, DWAC share price must follow the recovery path in order to reach the $30 recovery level.

Technical indicators suggest the DWAC stock price being highly oversold. Relative strength index showcases the downside trend of DWAC shares. RSI was at 21 and was moving towards the extreme oversold territory.

MACD exhibits the downward velocity of DWAC share price. The MACD line is below the signal line after a negative crossover.

Investors in DWAC share price must wait until DWAC share price tries for a trend reversal after being oversold and surpasses the previous day’s high.

Summary

DWAC stock price has been slipping since March 2022 and fell till 52-weeks low now DWAC might sustain and revert back. Sellers have been barging the DWAC stocks to drag it below its 52-weeks low. Meanwhile, DWAC share price has slipped below 20, 50, 100 and 200-days Daily Moving Average.

DWAC share price has lost around 12.94% in the last week whereas 16.32% in the last month. Analysts have also provided some levels to be attained by DWAC shares during 2023 if it follows up the recovery path. Technical indicators suggest the DWAC share price being highly oversold.

Technical Levels

Resistance level: $13.00 and $17.05

Support level: $12.00 and $11.50

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.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing