Technical analysis by limitissky77 about Symbol WIF: Buy recommendation (2/10/2025)

Key Observations: Price Action: The price is currently trading around $0.6584. The chart shows a strong downtrend from a previous high above $4.00, indicating a long-term bearish trend. The price has reached a major support zone (marked in green), which aligns with previous accumulation levels before the big uptrend. Support & Resistance Levels: Major Support: Around $0.60 - $0.65, where price has previously consolidated. Major Resistance: Likely around $1.00 (psychological level) and $1.50. RSI (Relative Strength Index): Current RSI: 23.97, which is in oversold territory (<30). This suggests that the asset is heavily oversold and could be due for a bounce or relief rally. However, RSI alone isn't a strong reversal signal; price action confirmation is needed. Market Sentiment & Potential Scenarios: Bullish Case: If the price holds the $0.60 - $0.65 support and forms a bullish pattern (e.g., double bottom, higher low), we could see a bounce towards $1.00 - $1.50. Bearish Case: If the support breaks, the price could move lower, possibly towards $0.50 or lower before finding new support. Trading Plan & Risk Management: Potential Long Entry: If price consolidates above $0.65 with increasing volume and bullish structure. Stop-Loss: Below $0.58 - $0.60 in case the support fails. Profit Targets: First target: $1.00 (psychological level). Second target: $1.50 (previous resistance zone). Confirmation Needed: Look for a bullish engulfing candle, increasing volume, or RSI divergence before entering a long position. Conclusion: The chart shows oversold conditions at strong historical support. A potential bounce could happen, but confirmation is needed before entering a trade. Risk management is crucial, as a breakdown below support could lead to further downside.