Breakout attempt at $0.029 resistance: Can Walrus price extend gains?

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Walrus surges 35.35% to $0.0277 today

Highlights

WAL/USD jumped 35.35% intraday to $0.0277, holding above short-term moving averages while remaining below long-term resistance.
Oscillators and momentum indicators show mixed readings, with overbought signals persisting despite strong intraday buying strength.
Trading range for the next 2 to 3 days is expected at $0.021 to $0.029, with a high probability of further gains and limited downside below $0.0209 support.

Overbought signals persist as bullish momentum challenges long-term resistance

On the technical front, the price is above the MA-20 and MA-50 on the hourly chart, signaling short-term strength, but remains beneath the MA-200 on the daily timeframe, underscoring long-term weakness. The immediate support is defined by the Ichimoku Kijun at $0.0209. Among momentum indicators, MACD has shifted to a buy signal, whereas ADX is still neutral. Oscillators show notable overheating: RSI is elevated at 71.28, while both Stoch RSI and CCI are firmly in overbought territory. Bull/Bear Power underscores strong intraday buying pressure. The confluence of persistent overbought oscillator signals and robust momentum creates a scenario where the risk of a near-term pullback remains present despite current upward movement.

Consolidation likely as volatility and upside breakout risk build

For the short term, the expected volatility band is $0.021 to $0.029 over the next two to three days. The base case is for price consolidation in this range, but there is a very high probability of further upside extension if bullish momentum accelerates. Should the upper boundary at $0.029 break, additional gains are plausible. Conversely, a reversal below immediate support at $0.0209 could trigger a short-term correction.

Anton Kharitonov, expert at Traders Union, highlights that Walrus (WAL) shows notable short-term momentum while long-term weakness persists below the key MA-200 level. He points out multiple overbought signals and warns that a near-term pullback is likely if the current rally loses steam. The analyst takes a defensive stance, emphasizing that support at $0.0209 is critical for the bulls. "Base case is sideways consolidation, but unless $0.029 is cleared with conviction, I remain cautious on further upside."

Previously it was reported that Walrus was locked in a pronounced bearish trend, with sellers maintaining control and technical indicators pointing to continued downside risk. The current rally has shifted short-term momentum, but with oscillators deeply overbought, traders should closely monitor for signs of a potential pullback as price tests resistance above $0.029.

Source of Data: WAL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.