WAL Technical Analysis Jan 24

WAL market structure maintains the downtrend; LH/LL formation dominant, short-term bearish signals prevailing.

Market Structure Overview

WAL is holding steady at $0.13, while the overall market structure signals a clear downtrend. The recent lower highs (LH) and lower lows (LL) sequence confirms the bearish structure. Price is trading below EMA20 ($0.14) and Supertrend is giving a bearish signal, capped by $0.16 resistance. Multi-timeframe (MTF) analysis identified a total of 9 strong levels across 1D, 3D, and 1W charts: 2 supports/1 resistance on 1D, 1 support/3 resistances on 3D, 2 supports/4 resistances on 1W, with the weighted distribution reinforcing bearish pressure. RSI at 40.04 is in neutral-bearish territory, MACD shows a negative histogram. No significant news flow; structural analysis takes precedence.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

A higher highs (HH) and higher lows (HL) sequence is required for an uptrend; however, WAL’s recent swing highs capped at $0.1299 with no new HH formed. Short-term recoveries seen in $0.1254-$0.13 range, but these did not break the HL structure. A close above EMA20 ($0.14+) and BOS above $0.1299 could provide the first bullish signal, though weak in the current structure (bullish target $0.1958, score 26/100). RSI crossing above 50 would be supportive, but it’s distant now.

Downtrend Risk

Downtrend confirmed by LH/LL: Recent swing low at $0.1154 (score 75/100) and prior $0.1254 (68/100) formed LLs. $0.1299 acted as LH resistance. A drop below $0.1154 triggers CHoCH (Change of Character), confirming bearish continuation (target $0.0489, score 22/100). 24-hour -0.39% change and BTC downtrend increase the risk.

Structure Break (BOS) Levels

BOS (Break of Structure) confirms trend changes. Bearish BOS requires a break below $0.1154 swing low; a daily close below reinforces LH/LL and invalidates $0.1254. Bullish BOS needs a break above $0.1299 and EMA20 at $0.14, initiating HL sequence. MTF shows strong 3D/1W resistances (around $0.16 Supertrend); upside limited without $0.16 break. These levels are structural invalidation points: lower break bearish, upper break bullish shift signal.

Swing Points and Their Importance

Recent Swing Highs

Nearest swing high $0.1299 (score 74/100) acting as recent LH resistance. This level rejected short-term recoveries and pulled price down. Prior highs point to $0.16, but Supertrend resistance dominant. Holding above $0.1299 converts swing high to support, testable for potential HL.

Recent Swing Lows

Swing lows form support line: $0.1154 (75/100) most critical, defines LL structure; break accelerates bearish momentum. $0.1254 (68/100) intermediate support, pullback to here likely. These points should be watched by dip buyers; holds preserve LH/LL, rejection expects new LL.

Bitcoin Correlation

BTC in downtrend at $89,807 (+0.17% 24h despite), Supertrend bearish and rising dominance pressuring altcoins. WAL falls harder if BTC supports $88,400/$86,634 break; WAL $0.1154 support carries synchronized risk below BTC $88k. BTC resistances above $91,192 enable WAL $0.1299 BOS opportunity, correlation estimated 70%+. WAL upside limited without BTC structure break, caution mode prevailing.

Structural Outlook and Expectations

WAL structure bearish intact: LH/LL sequence, MTF resistance dominance, and indicator alignment support downside. $0.1154-$0.1299 range consolidation zone; awaits bearish BOS down or bullish BOS up break. CHoCH required for structural shift, short-term bearish bias in current setup. Detailed data available in WAL Spot Analysis and WAL Futures Analysis. Market volatile, monitor levels closely.