Worldcoin (WLD) is approaching one of its most important technical levels since its prolonged decline began in early 2024.
While a long-term chart suggests the token may be nearing the end of its bearish cycle, shorter-term price action indicates that traders should remain cautious until a decisive breakout is confirmed.
Market analyst Third Eye observes that WLD is trading at about $0.42, with a primary weekly support at $0.40. If the pattern turns out to be a reversal pattern, the chart indicates potential upside targets at $2.68, $4.20, and over $5.90.
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Why This Setup Matters For Worldcoin
Since its peak above the $10 level during the 2024 rally, Worldcoin has experienced selling pressure.
The coin has been printing new lows amid weakness in the alternative currency sector. Failure of its breakout would signify the beginning of improvement in its long-term trend.
The weekly chart of WLD/USDT Futures on Binance depicts the trend being formed within a large downward wedge. This pattern is created by a descending resistance and an ascending support line.
Source: X
The development of this formation has resulted in a reduction of price moves, implying a reduced bearish pressure.
At the moment, WLD has managed to hold above the ascending support line and is attempting to overcome the descending resistance. A powerful close above this level will mark the end of a long-term downtrend.
If the momentum persists, the further resistance levels stand at $2.69 and $4.20, breaking above which opens the path to the target above $5.90.
Short-Term Chart Tells A More Cautious Story
The future looks promising from a long-term perspective; however, the short-term forecast remains uncertain.
Crypto With Gopal stated that WLD has now formed a rising wedge after rebounding from its recent lows, with the bulls keeping their higher lows above the resistance levels.
Nevertheless, the 15-minute chart WLD/USDT suggests that rising wedges usually lose momentum before breakdowns.
Source: X
The current structure resembles a past structure, which lost out when support failed to hold up. The price is trading in a range of $0.427-$0.428 (resistance) and $0.423-$0.424 (support).
In case the price falls below support, WLD may fall to a level of $0.417-$0.418. Price needs to rise above $0.428-$0.430 for the structure to become invalid.
What Could Influence The Next Move
Technical setups alone will not be sufficient for deciding on the way forward for WLD. Sentiment in the broader cryptocurrency market, the performance of Bitcoin, and the general altcoin demand may be factors that will help sustain a breakout for the bulls.
Such a huge recovery has been witnessed before after a long bearish phase of cryptocurrencies, but such cases require a conducive market environment, increased trading volume, and participation by investors.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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