WLFI Technical Analysis Feb 22

The dominant descending trend structure (LH/LL) in WLFI continues, even though there’s consolidation around $0.12, if the $0.1042 support breaks, bearish targets may emerge. Upward, if $0.1434 resistance is surpassed, a CHoCH signal may come.

Market Structure Overview

WLFI’s current market structure clearly characterizes a downtrend. Recently, lower highs (LH) and lower lows (LL) formation is observed; this shows that the price is maintaining bearish momentum by making lower highs and lower lows. Current price is at $0.12 level with a 24-hour change of -4.23%. Trading below EMA20 ($0.12) reinforces the short-term bearish structure. The Supertrend indicator gives a bearish signal and $0.15 resistance is the main obstacle. Although RSI at 44.46 is in the neutral zone, positive divergence in the MACD histogram stands out, opening the door for a possible correction. In multi-timeframe (MTF) analysis, there are a total of 10 strong levels across 1D, 3D, and 1W timeframes: 2 supports/4 resistances on 1D, 1 resistance on 3D, 2 supports/2 resistances balance on 1W. This distribution indicates more resistance will be encountered for upward movements. Overall, while the structure is bearish, the consolidation in the $0.1042-$0.1163 range offers a window of opportunity for traders. When analyzing market structure, we determine whether the trend will continue or reverse based on swing points: HH/HL defines bullish, LH/LL defines bearish structure.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend, higher highs (HH) and higher lows (HL) structure is required; meaning each high must be higher than the previous high, and each low higher than the previous low. This structure is currently absent in WLFI, but the bullish histogram in MACD and RSI twitching upward from 44 could provide hope for short-term HL formation. For example, if $0.1042 support holds and there’s a close above $0.1294, the first HH test could be at $0.1434. If this level breaks, BOS (Break of Structure) would pave the way for bullish continuation target at $0.1705. However, the current LL sequence ($0.0961 latest low) weakens these signals.

Downtrend Risk

The downtrend is confirmed with LH/LL: After the last swing high at $0.1434, $0.1294 LH and $0.1163 LH formed, and lows sequenced as $0.1042 LL, $0.0961 LL. This structure shows the price is systematically weakening. If $0.1042 breaks, a new LL triggers bearish BOS, targeting $0.0569. Supertrend is bearish and BTC downtrend is pressuring altcoins. Attention: For CHoCH (Change of Character), watch for LH/LL breakdown.

Structure Break (BOS) Levels

BOS are critical breaks that confirm trend changes. For bearish BOS, a close below $0.1042 swing low is required; this strengthens the LL structure and activates $0.0961-$0.0569 targets. Bullish BOS comes with a close above $0.1434 swing high – this invalidates LH and HL sequence may begin, opening the door to $0.1705. Intermediate resistances $0.1163 (71/100 score) and $0.1294 (71/100) act as BOS filters. In MTF, 4 resistances on 1D make bullish BOS difficult. Traders should place stop-losses beyond these levels for risk management. Retest after BOS usually provides confirmation; for example, pullback expected on $0.1434 breakout.

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs: $0.1434 (77/100 score, main LH), $0.1294 (71/100), $0.1163 (71/100). These form the LH sequence and create a resistance cluster. $0.1434 is the backbone of the downtrend; if broken, structure changes (CHoCH). Current price near $0.1163 is the first test point for breakout. These levels gain importance by aligning with Fibonacci retracements – around the 61.8% level.

Recent Swing Lows

Recent swing lows: $0.1042 (64/100 score), $0.0961 (64/100). These support the LL structure and are main supports. If $0.1042 doesn’t hold, bearish momentum accelerates. These points are ideal entry/stop levels for long positions; for example, HL above $0.1042 could bring bullish bias. These supports are more critical on 1W timeframe.

Bitcoin Correlation

Altcoins like WLFI are highly correlated with BTC; BTC at $67,378 in downtrend (24h -1.65%), Supertrend bearish. If BTC supports $67,039-$64,350-$60,000 break, altcoin dumps trigger, accelerating WLFI below $0.1042. If BTC resistances $68,024-$70,570 are surpassed, WLFI could do relief rally, preparing ground for $0.1294 test. BTC dominance increase crushes alts; traders should monitor correlation with WLFI Spot Analysis and WLFI Futures Analysis. BTC below $67,039 = high risk for WLFI $0.0961.

Structural Outlook and Expectations

WLFI structure is bearish with LH/LL, current $0.12 consolidation. Bearish scenario: $0.1042 BOS to $0.0569 target. Bullish invalidation: $0.1434 BOS to $0.1705. MTF resistance dominance requires caution. Structure analysis is not static; every candle should be watched for BOS/CHoCH. Educational note: For trend continuation, BOS in same direction; for reversal, opposite direction. Bearish bias dominates in WLFI, but MACD divergence hunts correction. Risk management essential, use futures links for leveraged trades.