Walrus drops 10.7% after deep oversold signals dominate and technical levels crack

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Walrus drops 10.70% in volatile session

Highlights

Walrus (WAL) trades at $0.2237, well below its MA-20 ($0.2999), MA-50 ($0.3695), and MA-200 ($0.4488), confirming persistent bearish pressure across all timeframes.
A major token unlock scheduled for October 27, 2025 will add 17.5 million WAL tokens ($4.11 million) to circulation, making supply increase a key investor focus.
Momentum indicators confirm heavy selling with a 10.70% daily drop and less than 20% probability of a rebound, projecting a $0.1774–$0.1795 weekly trading range.

Upcoming token unlock as dominant driver of market participation

A scheduled token unlock is set for October 27, 2025, when approximately 17.5 million WAL tokens valued at about $4.11 million will be released, increasing the circulating supply. Recent trading for WAL has been marked by notable volumes, reaching $90.1 million on October 20, 2025, reflecting ongoing market participation. The upcoming token unlock remains the main focus for investors.

Bearish momentum intensifies as oversold signals and trend strength diverge

Momentum readings show strong downward bias. The MACD gives a strong sell signal, while ADX indicates that the current trend is strong, favoring bears. Both RSI and Stoch RSI are in oversold territory, while CCI also confirms a bearish bias, suggesting that the asset is deeply oversold. BBP and the Awesome Oscillator both reinforce that sellers remain in control of intraday momentum. WAL slipped 10.70% on the day, and the open at $0.2325 was slightly below the previous close of $0.2505, indicating a small gap down. The current price sits near the bottom of today’s range ($0.2217 – $0.2333), reflecting high intraday volatility and notable price pressure after the open. Despite ADX strength, there is some divergence as ADX signals trend strength while oversold momentum oscillators could inspire a technical pause, but this bearish tone is confirmed by the day’s price action.

Downside favored as weak recovery odds cap short-term forecast

For the next five trading days, WAL is expected to fluctuate between $0.1774 and $0.1795, with an average price near $0.1785. The probability of an upward move is very low (less than 20%), making further declines more likely. The baseline scenario assumes prices will stabilize in a sideways corridor within the weekly forecast range. In a bullish case, a break above $0.2407 could trigger a corrective bounce toward resistance. Alternatively, a bearish scenario would see the price break below $0.2217, accelerating losses toward the forecast weekly lows.

Viktoras Karapetjanc, senior expert at Traders Union, believes WAL’s current discount to its moving averages and oversold momentum present a challenging environment, yet sees potential for renewed interest given the strong market participation and upcoming token unlock. He notes that despite persistent bearish pressure, the high trading volumes signal that investor sentiment remains engaged, and macro risks appear largely priced in at these levels. While the probability of a near-term rally is low, Karapetjanc maintains a constructive outlook if dynamic resistance at $0.2407 is reclaimed, considering the asset is deeply oversold on all fronts. "If buyers can defend current lows and spark a reversal above $0.2407, I see the potential for a solid technical bounce — but until then, I focus on accumulating on extreme weakness."

Last time we reported that Walrus was experiencing persistent selling pressure and strong bearish momentum, with technical signals pointing toward further downside. Market engagement remained high despite price weakness, as noted in the article persistent pressure from sellers across short- and long-term trends.

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.