WAL/USDC Breaks Key Support Amid Diverging Volume

Summary
• Walrus/USDC traded in a narrow range before a sharp drop late Friday.
• A large bearish candle on the 5-minute chart signaled increased selling pressure.
• Volume spiked during the breakdown below key support at $0.0854.
• RSI and MACD confirmed bearish momentum after 18:00 ET.
• Price closed near the session low amid high turnover and diverging price/volume action.

Walrus/USDC (WALUSDC) opened at $0.086 on Friday, reached $0.0873, and closed at $0.0831 by 12:00 ET. Total volume was 1,080,366.6 units, with $90,549.98 in turnover. The pair displayed a clear bearish bias over the 24-hour period, with a notable breakdown below $0.0854 and continued selling into the session close.

Structure & Key Levels

Price action showed a distinct bearish bias, with Walrus/USDC falling from a high of $0.0873 to a session low of $0.0827. Notable resistance was seen around $0.0864 and $0.0858, while $0.0854 became a critical support level before the breakdown. A long bearish candle with a small body at $0.0832 suggested strong short-term bearish conviction.

Moving Averages and Momentum

On the 5-minute chart, price closed below all key moving averages (20 and 50-period), reinforcing the downward trend. RSI dipped below 30 after 18:00 ET, indicating oversold conditions, while MACD turned negative with a bearish crossover. This confluence of indicators suggests continued bearish momentum in the near term.

Volatility and Bollinger Bands

Bollinger Bands showed a moderate expansion during the selloff, with price testing the lower band at $0.0831 before consolidating near the session low. This behavior suggests a period of heightened volatility, particularly following the breakdown of key support levels.

Volume and Turnover

Volume surged to over 108,036.6 units at the session close, coinciding with a sharp drop in price. However, the volume spike was not matched by a proportional rise in turnover, indicating potential price-volume divergence. This may suggest that the move is being driven by large, low-cost trades or wash trading.

Fibonacci Retracements

Fibonacci levels from the Friday high of $0.0873 to the session low of $0.0827 showed Walrus/USDC closing near the 61.8% retracement level at $0.0838. A continuation below $0.0827 would test the 78.6% level at $0.0822.

The market appears to have entered a phase of consolidation after a sharp bearish move. While the current trend supports lower levels, a reversal back above $0.0854 could signal a short-term rebound. Investors should closely monitor order flow and volume for signs of a potential reversal or continued weakness in the next 24 hours.