Descending Triangle – Breakout or Breakdown Imminent

WCT’s daily chart reveals a descending triangle forming since the April 15 Gate.io listing, with resistance at $0.36 and support at $0.3149 (X post). The price is consolidating after a 27% surge post-listing, now trading at $0.4038 with a 24H volume of $342M (CoinGecko). The 50-EMA ($0.38) acts as dynamic resistance, while the 200-EMA ($0.33) offers support. Stochastic RSI is at 30, indicating potential oversold conditions, and a Bollinger Band squeeze suggests an imminent volatility spike. Sentiment is mixed, with some traders eyeing a breakout above $0.36 (X post).
Trade Setup:
Bullish Entry: Buy on a daily close above $0.36 with volume >$400M.

Bearish Entry: Short on a break below $0.3149 with confirmation (e.g., bearish candle).

Stop Loss: $0.375 (bullish), $0.335 (bearish).

Take Profit: $0.396/$0.448 (bullish), $0.285/$0.2756 (bearish).

Risk/Reward: ~1:2 (bullish), ~1:1.8 (bearish).

Key Levels:
Resistance: $0.36 (triangle upper trendline), $0.396.

Support: $0.3149, $0.285.

A breakout above $0.36 could target $0.448, driven by WalletConnect’s Web3 adoption (15M monthly connections). Conversely, a breakdown below $0.3149 may accelerate selling, especially if broader market sentiment sours. Monitor volume and BTC correlation.
Deadline: April 25, 2025 (7 days for triangle resolution).