- WLD shows bullish momentum with RSI at 57.23 on the 4-hour chart.
- Key resistance at $2.30; breakout could trigger a rally to $2.50.
- Analysts highlight TD Sequential “buy” signal and growing on-chain activity.
Worldcoin (WLD) has recently faced significant volatility, largely driven by external events, such as the sudden departure of Sam Altman from OpenAI. This triggered an initial drop of over 14% in the token’s price, but the recovery signs suggest that the market sentiment might be shifting towards optimism once again. At the time of writing, WLD is trading at around $2.22, showing a slight decline of 3.20% over the past 24 hours. Let’s dive into the technical analysis to understand where WLD might be headed in the coming days.
After the sharp drop to $1.85 in November, Worldcoin’s price rebounded slightly, reaching $2.30 but has since struggled to maintain upward momentum. The market capitalization currently sits at $1.88 billion, with a 24-hour volume of $251.58 million, indicating a significant level of market interest despite the downtrend. The price of Worldcoin has fluctuated between a narrow range of $2.00 and $2.30 for the past few days, showcasing a consolidation pattern.
From a price action perspective, WLD has shown a series of lower highs, suggesting that the bears are still in control, although a break above the $2.30 level could indicate the potential for a further bullish move.
WLD daily price analysis: Worldcoin’s potential recovery amid weakening bearish momentum
Worldcoin (WLD) continues to show signs of stabilization after a period of heightened bearish activity. On the daily chart, the Relative Strength Index (RSI) stands at 43.75, reflecting neutral market conditions while leaning towards bearish sentiment. This level, being below 50, suggests ongoing selling pressure, but the RSI has exhibited a slight bullish divergence. Such divergence often indicates a weakening of the downtrend, providing hope for a possible price reversal. Traders are closely monitoring this signal, as it could precede a stronger upward movement.
The Moving Average Convergence Divergence (MACD) indicator further supports the potential for recovery. While the MACD line remains in negative territory, it is approaching the signal line, signaling a potential bullish crossover. This crossover would confirm a shift in momentum, potentially driving WLD prices higher. Combined with the slight increase in trading volume, these technical indicators suggest renewed interest from market participants, possibly due to discounted entry points created by recent price declines.
From a price perspective, WLD faces key resistance at $2.50, with current levels around $2.24 indicating consolidation. A breakout above this resistance could set the stage for a rally toward $3.00. Conversely, failure to sustain current levels might result in a retest of the $2.00 support zone. Overall, the charts depict a pivotal moment for WLD, with both risks and opportunities present for traders aiming to capitalize on the potential reversal.
WLD 4-hour chart analysis: MACD Closes in on a Bullish Crossover
The 4-hour chart for Worldcoin (WLD) indicates that the token is attempting a recovery amid ongoing market volatility. Currently trading above $2.25, WLD shows a gain over the session, driven by renewed buying pressure. The Relative Strength Index (RSI) on the 4-hour timeframe is positioned at 57.23, moving into bullish territory. This suggests an increase in positive momentum, with the RSI crossing above its 14-period moving average—a typical bullish indicator.
The Average Directional Index (ADX), which measures the strength of a trend, currently stands at 27.46. While this indicates a moderate trend, it is not yet strong enough to confirm a breakout. The alignment of these indicators suggests that buyers are gradually taking control, though significant resistance levels remain to be tested.
Popular market analyst Ali Martinez highlighted a TD Sequential “buy” signal on WLD’s daily chart, further supporting the bullish narrative. This indicator, known for its ability to signal potential reversals, aligns with the observed momentum shift on shorter timeframes. Martinez also noted increasing open interest in the derivatives market, implying heightened trader engagement and potential for upward movement.
Another indicator suggesting a shift in market sentiment is the rising Open Interest (OI) for WLD. Open Interest refers to the total number of open contracts in the derivatives market. A rise in Open Interest, as seen with WLD’s increase from $110 million to $122 million over the past week, often signals that new buyers are entering the market, which can propel prices higher. This increase in OI, combined with positive sentiment on social media and in crypto forums, hints at a potential rally in the near future.
The Advance Decline Ratio (ADR) is also showing positive readings above 1.0, indicating more gains than losses, which often signifies a strengthening trend. Additionally, Worldcoin’s Price DAA (Daily Active Addresses) divergence remains positive, suggesting increased user activity, which is a bullish sign for the token’s long-term outlook.
What to expect from Worldcoin price analysis
While Worldcoin (WLD) is still struggling to regain its bullish momentum, the technical indicators are starting to show signs of a potential recovery. The RSI is signaling weakening selling pressure, and the MACD is nearing a bullish crossover, both of which suggest that WLD could be gearing up for a rebound. However, a solid breakout above $2.30 is necessary to confirm that the bulls have taken control. For traders, keeping an eye on this resistance level will be crucial to gauge the token’s next move.
Looking ahead, the key support level for WLD remains at $2.00, with the next significant resistance level sitting at $2.30. A breakout above this level could trigger further upward movement, targeting the $2.50-$2.75 range in the short term. On the downside, a break below $2.00 would likely push WLD towards the next support at $1.85, which has acted as a strong floor in the past.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
