WLFI Technical Analysis Feb 4

WLFI remains trapped within the main downtrend despite a daily 3.90% rise; while RSI at the 35 level gives an oversold signal, the risk of a sharp drop increases if the critical support at 0.1238 USD is tested.

Market Outlook and Current Situation

WLFI is trading at 0.14 USD as of February 4, 2026, and fluctuated in the 0.13-0.14 USD range with a 3.90% rise over the last 24 hours. Volume remains notably high at 158.98 million USD, but this movement lacks the strength to alter the overall market downtrend. In the oppressive environment dominating the altcoin market, WLFI’s short-term recovery remains limited; without a sustained breakout above EMA20 (0.15 USD), the bullish scenario appears weak.

Bitcoin’s 3.59% drop across the market to 76,100 USD reinforces correlation in altcoins. Although WLFI’s 24-hour volume indicates rising speculative buying, the Supertrend indicator’s bearish signal keeps trend strength under downward pressure. Multi-timeframe (MTF) analysis identifies 11 strong levels: 3 supports/3 resistances on the 1D timeframe, 2 supports/3 resistances on 3D, and 1 support/2 resistance confluence on 1W. This structure suggests WLFI may enter short-term sideways consolidation, though the breakout direction will be decisive.

Despite no striking recent news flow for WLFI, liquidity flight from the broader crypto ecosystem is pressuring altcoins. Investors should closely monitor WLFI spot analyses to adjust positions; for futures trading, leveraged movements in the WLFI futures market could create extra volatility.

Technical Analysis: Key Levels to Watch

Support Zones

WLFI’s strongest support level stands out at 0.1238 USD (score: 72/100); this level shows strong volume confluence on 1D and 3D timeframes and was tested as the low point of the recent downwave. At a lower level, 0.1344 USD (score: 68/100) serves as the first line of defense for short-term bounces; if broken, a deeper pullback to 0.1056 USD (score: 63/100) could come into play. These supports align with Fibonacci retracement levels at 61.8% and 78.6%, creating MTF confluence, so hold probability is high, though risk of weakening on low-volume tests exists.

The importance of these support zones stems from their alignment with the lower band of WLFI’s downtrend channel. Historical data shows 20-30% bounces on similar support tests; however, the current bearish momentum could lead to a sharper retest this time.

Resistance Barriers

The most critical short-term resistance is positioned at 0.1381 USD (score: 81/100); this barrier is reinforced by EMA20 and Supertrend resistance, forming a strong selling wall. Above it, 0.1482 USD (score: 67/100) and 0.1582 USD (score: 66/100) should be monitored; these levels coincide with swing highs on the 1W timeframe. Breaking resistances requires at least a 50% volume increase, as the current 158M USD volume is insufficient.

Caution is advised against false breakouts during resistance tests; WLFI’s volatile nature could trigger liquidity hunt traps.

Momentum Indicators and Trend Strength

RSI (14) at 35.39 lingers in bearish territory, approaching oversold (below 30) with short-term bounce potential; however, lack of divergence does not support a trend reversal. The MACD histogram is negative and below the signal line, confirming the bearish crossover and strengthening downward momentum. On EMAs, price remaining below EMA20 (0.15 USD) preserves the short-term bearish structure; the death cross of EMA50 and EMA200 reinforces the medium-term downtrend.

Supertrend’s bearish signal points to 0.17 USD resistance, while ADX (average directional index) around 25 indicates a moderately strong trend. OBV (on-balance volume) shows a slight uptick but diverges from price, signaling underlying weakness. Overall, momentum is bearish, though RSI slowdown suggests possible sideways consolidation.

Risk Assessment and Trading Outlook

For WLFI, the risk/reward ratio (R/R) between bearish target 0.0530 USD (low score but channel projection) and bullish 0.2334 USD offers 1:2.5 R/R for the downside scenario. The upside scenario requires a breakout above 0.1381 USD; otherwise, support loss could trigger. With high volatility, stop-losses should be placed 2% below supports; overall outlook is neutrally bearish, with altcoin rallies limited as long as BTC pressure persists.

In a positive scenario, an impulse wave extending to 0.23 USD is possible with volume increase; in the negative, depths below 0.10 USD could emerge. Investors should monitor MTF confluence for asymmetric opportunities, but market structure fragility carries high risk.

Bitcoin Correlation

Altcoins like WLFI are directly impacted by Bitcoin’s downtrend; BTC’s current 3.59% drop from 76,100 USD is draining altcoin liquidity and pressuring WLFI. BTC’s critical supports are at 75,482 USD, 72,934 USD, and 61,211 USD; loss of these could trigger an additional 15-25% drop in WLFI. Resistances to watch: 77,797 USD, 81,773 USD, and 89,425 USD; BTC Supertrend bearish signal is a red flag for altcoins.

If BTC dominance rises, WLFI’s rotation weakens; thus, if BTC fails to hold 75k support, WLFI could drop quickly to 0.1238 USD. Conversely, a BTC bounce would give WLFI breathing room, but with a correlation coefficient above 0.85, independent movement is limited.