On the charts $WLFI a rare technical event occurs that always draws attention: the price has flattened so much that three key moving averages — EMA 7, EMA 25, and EMA 99 — have converged into a tight node around $0.1004–$0.1008 (on the hourly time frame). This is the moment of truth when the market is preparing to make a choice.
Looking at the situation more broadly, the daily chart paints a less optimistic picture. The long-term EMA 99 is at an unreachable $0.1242, and the price has been trading below all averages for the past two weeks, forming a descending channel. But therein lies the local intrigue: right now, on smaller timeframes, we see a calm before the storm.
The RSI on the 4-hour chart has fallen to extreme levels of 17–27, indicating strong oversold conditions. The market has exhausted itself in attempts to push the price lower — the spring is maximally compressed. Logic suggests that the first impulse will most likely be directed upwards, at least for a technical correction.
The scenario considers a rebound from the compression zone:
· Entry (long): $0.0975 – $0.0985 (current consolidation zone where all averages converged to a node).
· Targets: TP1 — $0.1005 (return to the node of averages), TP2 — $0.1025 (test of local resistance and 24h highs).
· Stop: $0.0965 (clear level below density; its breakdown will break the compression structure).
When three averages converge into one node, the market rarely stays in such equilibrium for long. The next movement promises to be sharp.
What do you think, will the oversold condition take its toll and we will see a rebound upwards, or will the overall downward trend on the daily charts outweigh and push this node down?