Wayfinder crypto gains 175% in a week: Bulls fight to defend $0.32 support
Wayfinder challenged highs from May at $0.387 before being forced to retreat toward $0.32 late on the 24th of August.
Key Takeaways
PROMPT has tested the $0.32 support level multiple times in the past 24 hours. Bearish market-wide momentum could see Wayfinder crypto fall below this support.
Wayfinder [PROMPT] was up 175% over the past week. It formed a descending triangle pattern but broke out bullishly. This rally saw the AI-focused token rally to the highs it formed in May.
Over the past 24 hours, the bullish strength appeared to have abated. Its daily trading volume was down 9.7%, according to CoinMarketCap data.
Bitcoin [BTC] was sinking below $112k at press time, which might affect the $112 million market cap altcoin’s momentum.
The trading volume was still extremely high compared to the past few months. The daily RSI was at 92.5 at the time of writing, deep in overbought territory.
While it has not formed a bearish divergence, the Wayfinder crypto market was likely overextended.
This could result in a short-term pullback. The levels that marked the lower highs during the downtrend could serve as support, in case PROMPT prices descend further.
AMBCrypto examined where the price was likely to go in the short term.
Wayfinder crypto: A price drop ahead
Over the weekend, the 2-hour RSI and the price have formed a bearish divergence, highlighted in yellow. Even so, the CMF remained above +0.05, showing buying pressure was sizeable.
A drop below the $0.32 support level would likely see $0.275-$0.28 retested.
The 48-hour liquidation heatmap showed that $0.4 and $0.37 were the magnetic zones above the price. They could pull PROMPT higher. To the south, the notable liquidity cluster was at $0.31.
Therefore, the findings from the 2-hour chart were vindicated. A drop below $0.31-$0.32 would mean that bulls lacked the bidding strength to reverse the short-term bearishness.
This could drive a retracement toward $0.26, the next support level and magnetic zone to the south.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
