Worldcoin (WLD) Price Ready for Double-Digit Rally as Key Support Holds, But There's a Catch

The price of Worldcoin (WLD) has been bouncing off trendline support in a rally that started in September.

Worldcoin (WLD) Price Ready for Double-Digit Rally as Key Support Holds, But There’s a Catch

The price of Worldcoin (WLD) has shown some strength in the past few weeks, and it is currently trading above a key trendline support, forming a higher high and higher low pattern.

This pattern has been forming since September, and each time the price bounces off this trendline, it rallies significantly. The first bounce triggered a 150% rally, while the second bounce has triggered a 20% rally so far.

Based on this pattern, one would expect the price to bounce off this trendline once again and rally by at least 70%, forming a higher high on the pattern. This would put WLD’s price at around $4.5 to $5.

However, for this pattern to continue, the price needs to break through some key resistance levels, and it also has to maintain support at some crucial areas.

Worldcoin Price Analysis (WLD)

The price of WLD has formed a higher high and higher low pattern since bouncing off a key trendline in September. Each bounce has triggered a significant rally, and based on the pattern, another rally of at least 70% is expected.

However, several resistance and support levels could impact the price movement, and traders need to be aware of these levels to time their entries and exits accordingly.

The 50-day simple moving average (SMA) is currently above the price and could serve as resistance to further growth if the bulls encounter it at that point.

On the other hand, the price has already broken through the 100-day SMA and even tested it as new support, which could help the price continue to rise.

The support at the 100-day SMA has been tested multiple times in the past few weeks, and it has held up well so far. This bodes well for the bulls as they look to continue pushing the price higher.

If the price can continue to rise and break through the 50-day SMA, it could encounter another potential resistance zone between $3.1 and $3.2. This area was an area of struggle in the past, and it is likely history repeats.

Breaking above this level would see WLD continue its upward pattern, and we could see the price reach the next target of around $4.5 to $5 by the end of the year.

On Lower Time Frames

Looking at the lower time frames, such as the 4-hour chart, we can see the price forming a bullish pennant pattern. This pattern is typically followed by a breakout in the direction of the prevailing trend.

In this case, the prevailing trend is bullish, so we would expect the price to break out to the upside. A breakout from this pattern would see WLD’s price rise by around 10% to 15%.

This breakout would also put the price at a crucial resistance zone, and if it can break through this zone, we could see another leg up in the price, forming a higher high on the pattern.

However, if the price fails to break out from this bullish pennant pattern or if it encounters strong selling pressure at the crucial resistance zone, we could see the price forming a double top pattern.

A double top pattern is a bearish reversal pattern, and if the price forms this pattern, we could see WLD’s price drop significantly, forming a lower low on the pattern.

RSI Shows More Room for Price Growth

The relative strength index (RSI) is currently at a neutral reading of 50, which indicates that the price has more room to grow before it enters into an overbought position.

This bodes well for the bulls as they look to continue pushing the price higher. However, they need to be mindful of the potential resistance levels and the price action on the lower time frames to time their entries and exits accordingly.

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