Here's How WOO Can Increase by 105% | Credit: Derek Fenech
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Key Takeaways
WOO X (WOO) trades inside the $0.335 resistance area.
The price has fallen over 20% since its $0.384 high on Dec. 4.
Will the WOO price break out, or will it get rejected instead?
The WOO price has performed admirably since the beginning of November, increasing by 160% and briefly moving above the $0.335 horizontal resistance area.
However, WOO could not sustain the breakout,t and the price has returned to the resistance area.
It is still unclear if it is retesting the resistance or if it will be rejected by it. The former could lead to a retest of the yearly highs, while the latter would likely start a correction.
Let’s analyze the price action and see which will likely happen.
The weekly time frame WOO chart shows that the price has increased alongside an ascending support trend line since June 2022. WOO most recently validated the trend line in August 2024 (white icon). This led to the acceleration of the upward movement and a high of $0.384 in December.
Despite the increase, WOO failed to break out from the $0.335 horizontal resistance area. This is a critical area since it has acted as support and resistance since 2022.
A breakout above it can trigger a 106% increase toward the range high of $0.620. On the other hand, a rejection can lead to another retest of the support trend line at $0.102.
Technical indicators lean bullish, but not by a lot. While the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing, they are barely above their bullish thresholds at 50 and 0, respectively.
When combined with the tepid price action, the direction of the future trend needs to be determined by looking at the daily time frame.
Possible Correction Ahead?
The daily time frame chart gives a slightly bullish WOO prediction, mostly because of the wave count.
The most likely count suggests that WOO is in wave four of a five-wave upward movement. The impulsive increase is characterized by the breakout from an ascending parallel channel containing the price movement since Aug.5.
According to the wave count, the decline on Dec. 9 completed a fourth wave pullback, validating the channel as support (white icon). This often happens in wave four.
The exact shape of wave four is unclear. The WOO price may create a symmetrical triangle, the most common pattern in wave four. On the other hand, the price may create an A-B-C correction, which would mean that the low is not in yet.
In any case, another WOO price increase that completes wave five is likely. The target for the top of wave four is between $0.602-$0.642, created by the 2.61 external Fibonacci retracement of wave four (black) and the 4.21 extension of wave one (white). The target also aligns with the previously outlined long-term resistance.
While there is an intermediate target at $0.467, the $0.602-$0.642 is more likely to act as the top because of the confluence of resistances.
Key Resistance at $0.335
The weekly and daily time frame WOO charts both lean bullish. However, the price must still break out and close above the $0.335 horizontal resistance area to confirm the trend reversal.
If that happens, WOO can move toward its yearly high of $0.648. Conversely, a rejection can trigger a drop to the long-term support at $0.102
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
