WOO X Joins RWA Race, WOO Price Recovers by 40% – Is $0.50 Next?
Can WOO Reach $0.50? | Credit: Hameem Sarwar
Key Takeaways
- The WOO X exchange announced its entry on the RWA race on April 22.
- The price of WOO has increased over 40% since its April 13 low of $0.23.
- After a 37-day correction, has the WOO price finally started a reversal?
On April 22, WOO X announced its entry into Real World Assets (RWA), becoming the first centralized exchange (CEX) to list an investment product such as US Treasury Bills. While the price of its native token WOO did not react to the news, it has been on an upward trend the past 10 days.
The WOO price has increase more than 40% since bouncing on April 13, validating a long-term horizontal support area. With the wave count showing a completed correction, traders are wondering if the 37-day decrease has ended and a new upward movement has begun.
What is the RWA Earn Vault?
WOO X is a cryptocurrency exchange that offers 142 spot and 183 futures markets. Based on its traffic, liquidity and trading volumes, WOO X is ranked as the #64th biggest exchange by CoinMarketCap. Its trading volume in the past 24 hours is $286 million.
The native token for the exchange is WOO, which is used for governance. Users can stake WOO to earn an average of 12.84% APR. On top of this, WOO X stakers gain a number of free daily withdrawals and discounted trading fees based on the amount of WOO staked.
Currently, 506 million WOO are staked, amounting to 27% of the circulating supply of 1.854 million.
On April 22, WOO X announced its entry into Real World Assets with the RWA earn vault. Through the vault, users will be able to buy tokenized US Treasury Bills, a low-risk, high quality asset.
Earlier in the month, WOO X introduced a set of tokenized indices for major narratives such as memecoins, Layer 2-s and the top 30 biggest cryptocurrencies. The indices are released in a partnership with market maker Wintermute and GMCI.
Tokenization of assets has become especially popular since BlackRock announced its tokenized fund on Ethereum.
WOO Bounces at Long-Term Support
The weekly time frame technical analysis shows that WOO has fallen since reaching a yearly high of $0.65 in March. The decrease validated the $0.65 horizontal area as resistance (red icon) and catalyzed a 65% drop, culminating with a low of $0.23 on April 15.
The WOO price bounced afterward, creating a long lower wick (green icon) and validating the $0.27 horizontal area as support. This is an important area since it had previously acted as resistance for nearly 500 days. With the bounce, it has possibly turned to support.
Despite the increase, technical indicators paint a bearish outlook. Both the RSI and MACD are falling. The RSI is below 50, while the MACD has made a bearish cross (red circles). Because of the mixed price action and indicator readings, looking at a lower time frame is needed to determine the future trend’s direction.
WOO Price Prediction: $0.50 Incoming?
The daily time frame chart provides a more bullish outlook because of the wave count. Starting in September 2023, WOO completed a five-wave upward movement (white) which culminated with the yearly high on March 5.
Then, WOO finished a W-X-Y corrective structure (black), leading to a test of the 0.786 Fibonacci retracement support level. In it, waves W:Y had an exactly 1:1 ratio, common in such corrections. When combined with the bounce at the long-term horizontal support area, the price movement suggests the correction is complete.
The daily MACD supports the bullish outlook, since it has made a bullish cross (green icon). The RSI is close to confirming the bullish outlook and will do so by breaking out from its divergence trend line (green).
If the correction is complete, WOO will soon increase toward $0.50 and eventually reach a new yearly high.
WOO Trend Intact Above $0.27
The WOO price has bounced over 40% since its April 13 low. By doing so, WOO also validated a long-term horizontal support area at $0.27. The price action and especially wave count suggest the correction is complete. As long as the WOO price does not reach a weekly close below $0.27, the continuation of the increase toward at least $0.50 is the most likely scenario.
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