WAL Weekly Analysis Jan 28

WAL closed the week with a limited +1.43% rise but remained stuck in a narrow range around $0.12, preserving its downtrend structure; as long as the critical $0.1190 support holds, trend integrity remains intact, while breaking above $0.1244 resistance is necessary for upside movement.

Weekly Market Summary for WAL

WAL followed an almost motionless course at the $0.12 level last week, with the trading range narrowing to $0.12 – $0.12. Although the weekly change was +1.43%, the volume profile remained low at $4.13M, indicating limited market participation. The primary trend continues as downtrend, with RSI at 38.53 not approaching oversold territory but staying in the neutral-bearish zone. MACD gives a bearish signal with a negative histogram, and price is trading below EMA20 ($0.13). In the macro context, there is no specific news flow for WAL, but Bitcoin’s sideways movement is putting pressure on altcoins. This week, while the market structure maintains downtrend dominance, $0.1190 support becomes the main focal point for position traders. For more detailed data, you can check the WAL Spot Analysis page.

Trend Structure and Market Phases

Long-Term Trend Analysis

The long-term trend structure exhibits a clear downtrend character; higher timeframes (1W, 3W) are dominated by lower highs and lower lows formation. Price is trading near the lower band of the descending channel starting from $0.2147, and the trend filter gives a bearish signal. From a market cycle perspective, WAL appears to be in the distribution phase since the peaks at the end of 2025, though the recent flat movement could give accumulation signals if accompanied by volume increase. Trend integrity remains intact above the $0.1190 major support; a break below this level could accelerate toward the $0.0489 downside objective. From a portfolio manager perspective, short positions are attractive in terms of risk/reward on long-term horizons, but an increase in Bitcoin dominance in macro cycles could pressure altcoins.

Accumulation/Distribution Analysis

In terms of market phases, distribution patterns are emerging in WAL: flat range with low volume, bearish MACD divergence, and resistance clusters ($0.1244-$0.1356) indicate selling pressure. Accumulation phase characteristics are not yet clear; oversold is awaited for bottom formation with RSI at 38.53. Volume profile remains low, suggesting smart money is not accumulating. If $0.1190 holds, an accumulation base could form, but the current setup is dominated by distribution. Similar formations in the past led to downtrend continuations, so position traders should be cautious of fakeouts. Check futures data for WAL Futures Analysis.

Multi-Timeframe Confluence

Daily Chart View

On the daily timeframe, WAL is stuck between $0.1190 support and $0.1244 resistance; 1D shows 1 support / 3 resistance breakdown. Price shows a bearish short-term trend below EMA20, with MACD histogram expanding negatively. Momentum is weak, but confluence supports $0.1190 with a daily volume cluster (score 73/100). A breakdown below $0.1190 could lead to a quick drop, while above $0.1244 could trigger short-covering. For position traders, daily confluence is insufficient for trend reversal; weekly confirmation is required.

Weekly Chart View

On the weekly chart, downtrend is intact, with lower highs sequence continuing. 1W shows resistance-heavy structure with 2 support / 4 resistance (total 11 strong levels: 1D/3D/1W). Weekly close flat at $0.12, but $0.1356 and $0.2147 distant resistances are major hurdles for trend reversal. Supertrend bearish, price below EMA50 confirms distribution phase. Multi-timeframe confluence strengthens bearish bias; weekly higher low is required for accumulation.

Critical Decision Points

Key levels will determine direction: Major Support $0.1190 (73/100 score, confluence 1D/3D/1W), break below risks $0.0489 downside (22 score). Resistances: $0.1244 (66/100), $0.1356 (63/100), $0.2147 (62/100). Upside objective $0.1768 (30 score). Market structure neutral-bearish above $0.1190, aggressive downtrend on break below. Key inflection point $0.1244; break above increases bullish confluence. Visit the WAL and other analyses section for all analyses.

Weekly Strategy Recommendation

In Case of Rise

Bullish scenario triggered by $0.1244 breakout; targets $0.1356 then $0.1768. Stop-loss below $0.1190, R/R 1:2.5+ while entering long positions on accumulation phase confirmation. BTC above $91k supportive, volume increase required. Position sizing max %2-3, manage with trail stop.

In Case of Fall

Bearish scenario on $0.1190 breakout; target $0.0489. Short entry on breakout confirmation, stop above $0.1244. High R/R (1:4+), ideal while expecting downtrend continuation. BTC dominance increase as catalyst.

Bitcoin Correlation

WAL shows high correlation with BTC; BTC sideways ($89k) and bearish supertrend dominance pressures WAL. If BTC key supports $89,071 / $87,371 break, altcoin selling pressure increases, WAL tests $0.1190. If resistances $91,187 / $92,961 broken, WAL sees short-covering, targeting $0.1244+. Despite BTC +1.89%, WAL gave limited reaction, divergence caution signal; BTC below $84k major risk for WAL.

Conclusion: Key Points for Next Week

To watch next week: $0.1190 support hold/break, $0.1244 resistance test, BTC $89k dynamics, and volume spikes. While trend structure remains bearish, confluence breakouts can change direction. Position traders focus on risk management, news flow could be a catalyst.