Walrus continues downward price move as sellers retain control despite oversold signals

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Walrus slides 12.47% to $0.0462 today

Highlights

Walrus became the primary storage provider for $DATA Network applications via a partnership, expanding its future role in a substantial ecosystem.
The Sui Foundation invested $30 million in $DATA Network to enable protocol and Trace AI-data registry migration onto the Sui blockchain.
WAL/USD trades below short- and medium-term moving averages with bearish momentum, projecting a $0.0386 to $0.0548 range and higher probability of continued decline.

Storage provider role solidified amid sustained selling pressure

Walrus secured a partnership with $DATA Network to serve as the primary storage provider for its applications, as reported by Cryptonews. This strategic alignment gained added significance following the Sui Foundation's $30 million investment in $DATA Network on October 12, which will facilitate the migration of $DATA's protocol and Trace AI-data registry onto the Sui blockchain. Through this migration, Walrus will become the default storage layer for all forthcoming $DATA Foundation applications, establishing a crucial role within an expanding, well-funded ecosystem, according to Cryptonews. These developments have unfolded even as price action has remained under broader selling pressure.

Long-term support holds as technicals confirm persistent weakness

Technical analysis indicates that WAL/USD is trading below the MA-20 and MA-50, with the price remaining just above the MA-200, highlighting a key long-term support zone. Immediate resistance is set by the Ichimoku Kijun at $0.0531, while the short-term downside is defined by support near $0.0386. MACD flashes a Sell signal and ADX remains neutral, while RSI stands at 38 and CCI is oversold. Stochastic RSI offers a neutral reading, and Bull/Bear Power confirms sellers' dominance amid current volatility.

Downside risk elevated under volatile short-term consolidation

In the short term, WAL/USD is likely to consolidate within a volatility band between $0.0386 and $0.0548 over the next two to three trading days. The probability of a further move downward is higher, with a 76% chance of decline versus a 24% likelihood of recovery. Consolidation near the session lows is the baseline scenario; a bullish reversal would require a clear breakout above the $0.0531 resistance, while renewed downside pressure would be signaled if support at $0.0386 fails.

Viktoras Karapetjanc, expert at Traders Union, sees Walrus positioned for a potential turnaround, despite its technical weakness. He notes the fundamental boost from securing the $DATA Network partnership and integration into Sui Foundation’s funded ecosystem. Macro support from institutional investment could catalyze utility and sentiment if technicals stabilize. The analyst believes current volatility may last, but structural adoption offers tailwinds once market conditions improve. "Fundamental partnerships and institutional backing offer solid ground for a recovery once broader sentiment shifts," says Karapetjanc.

Earlier, analysts noted that Walrus was experiencing consolidation with elevated volatility and mixed momentum signals. The current breakdown below its short- and medium-term moving averages signals a further loss of momentum, making the $0.0386 support level a critical area to watch for potential renewed downside.

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.