Journalist
Posted:
- WOO has a strong bullish bias from a technical perspective.
- The lower timeframe consolidation zone could be an area of interest for traders.
Woo Network [WOO] gained close to 42% on 18th and 19th December alone. The token has been on a strong uptrend in December and the bulls could continue to push prices higher after a brief pullback.
AMBCrypto’s technical analysis of WOO Coin showed that further gains were possible. Yet, some on-chain metrics showed that selling pressure could intensify in the coming days.
The consolidation at $36 is expected to act as support
Source: WOO/USDT on TradingView
On 15th December, WOO reached $0.3925 and retreated to find support at $0.351. This dip demarcated the $0.35-$0.37 area as a lower timeframe consolidation zone.
A WOO revisit to this area would likely yield a bullish reaction from the price.
The Fibonacci retracement levels plotted showed the 50% level was at $0.3513. It provided additional strength to this level as a support. Meanwhile, the $0.4267 level is also a higher timeframe level of significance.
The RSI on the 12-hour chart was at 61 and showed bulls had strength despite the pullback. The OBV did not see a notable plunge either, showing that selling volume was minimal.
Two metrics point toward increased selling pressure
Source: Santiment
The weighted sentiment has been through the roof over the past week. This reflected heightened social media engagement amidst the strong price gains.
However, the MVRV ratio was at a high not seen since October 2021.
Read Woo Network [WOO] Price Prediction 2023-24
Moreover, the mean coin age has trended lower since the first week of November. In the past two weeks, it plummeted south.
This presented the possibility that longer-term holders were offloading their WOO to realize profits. Hence, the $0.4265 support might be broken soon.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.