$WAXP is trading at $0.00742 with -9.18% loss after touching $0.00866 high. Volume remains elevated at 321.63M WAXP and $2.58M USDT. The catalyst? A textbook "buy the rumor, sell the news" pattern after the deflationary token burn announcement triggered a 30% surge earlier this week. Smart money is taking profits. The crowd is chasing lower. ๐
๐ Looking at the 4-hour timeframe, $WAXP surged from $0.00630 to $0.00888 on March 20 following the deflationary token burn announcement . Volume spiked 3,800% to $89M, confirming the move had real conviction . But the rally stalled at $0.00888, and price has since pulled back to current levels. SAR indicator sits at 0.00704, now acting as critical support below. A break below this level could accelerate selling.
๐ Key levels are clear. Support at $0.00704 and $0.00673. Resistance at $0.00787 and $0.00844. A clean break below $0.00704 targets $0.00673โ$0.00616. Recovery above $0.00787 needed to stabilize.
Here's what happened. WAX announced a new deflationary token model on March 20, replacing inflation with a usage-driven burn mechanism . The news triggered a 30% rally with 3,800% volume surge, pushing price from $0.0063 to $0.00888 . But multiple signals now point to a top. Technical analysts flagged a 4-hour MACD bearish divergence โ price made new highs while momentum contracted . Funding rates turned negative at -0.32%, making short positions cheaper to hold . Order book depth shows -39.7% sell-side imbalance, meaning sellers are stacked above . CoinMarketCap data confirms WAXP entered "ๅฒ้ซๅ่ฝ" (surge and pullback) status after the initial pump .
Bullish case requires reclaiming $0.00787 with volume to target $0.00844โ$0.00900. But momentum has clearly shifted.
Bearish case is playing out. If $0.00704 fails, next support is $0.00673 then $0.00616. Some analysts project a pullback to $0.0065โ$0.0074 before the next leg . Short-term profit-taking after a 30% pump is healthy and expected.
Entry Zones for Smart Traders: $WAXP ๐
๐ฅ Aggressive Long (High Risk): Above $0.00750 โ target $0.00787โ$0.00844, SL $0.00700
๐ก๏ธ Conservative Entry: Wait for pullback to $0.0065โ$0.0070 โ too early now
๐ Aggressive Short: Below $0.00700 โ target $0.00673โ$0.00616, SL $0.00740
The bigger picture. This is healthy profit-taking after a major announcement-driven rally. The deflationary model creates long-term value, but short-term volatility is expected. Watch for stabilization above $0.0070 before considering longs. The next 24-48 hours will determine if this is a dip to buy or the start of a deeper correction.
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