Journalist
Posted:
- WOO has a strong bullish bias from a technical perspective.
- The lower time frame consolidation zone could be an interesting area for traders.
Woo Network [WOO] up almost 42% on December 18 and 19 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. Still, some on-chain metrics showed that selling pressure could increase in the coming days.
The consolidation at $36 is expected to act as support
Source: WOO/USDT on TradingView
On December 15, WOO reached $0.3925 and retreated to find support at $0.351. This dip marked the $0.35-$0.37 area as a lower time frame consolidation zone.
A WOO visit to this area would likely see a bullish reaction from the price.
The plotted Fibonacci retracement levels showed the 50% level at $0.3513. It provided additional strength at this level as support. Meanwhile, the $0.4267 level is also a higher timeframe of significance.
The RSI on the 12-hour chart stood at 61, showing that the bulls were strong despite the pullback. The OBV also saw no significant decline, showing that sales volume was minimal.
Two figures indicate increased selling pressure
Source: Santiment
Weighted sentiment has gone through the roof this past week. This reflected increased social media engagement amid the sharp price increases.
However, the MVRV ratio was at a level not seen since October 2021.
Read Woo network [WOO] Price forecast 2023-24
Moreover, the average coin age has been trending lower since the first week of November. Over the past two weeks it has been dropping south.
This offered the opportunity for longer-term holders to waive their WOO in order to make a profit. Therefore, the USD 0.4265 support could be broken soon.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.