Bearish Retracement Nearing Key Support – Reversal Potential

Since its Gate.io listing on April 15, 2025, WCT surged to $0.6314 before retracing to $0.4038 by April 18 (CoinCarp). The 4H chart shows a descending staircase pattern with lower highs, indicating a bearish distribution phase (X post). The price is approaching a critical support zone at $0.371-$0.3149, aligning with the 0.618 Fibonacci retracement from the listing high. RSI (14) is at 42, nearing oversold, suggesting fading bearish momentum. MACD shows a bearish crossover but with converging lines, hinting at a potential reversal.
Trade Setup:
Entry: Buy at $0.315-$0.335 if price holds support with a bullish candle (e.g., hammer or engulfing).

Stop Loss: $0.305 (below 0.786 Fib).

Take Profit: $0.36 (first resistance), $0.396 (key resistance).

Risk/Reward: ~1:2.5 at first TP.

Key Levels:
Support: $0.3149 (major), $0.371 (minor).

Resistance: $0.396, $0.448.

A volume spike or RSI divergence at support could confirm a bounce. However, a break below $0.3149 risks further downside to $0.2756. Watch for increased buying pressure as WCT’s airdrop season (50M tokens allocated) may boost sentiment (Bitget).
Deadline: April 22, 2025 (4 days to confirm support hold or breakdown).