Is Worldcoin’s 20% Price Surge Facing a Potential Reversal? Key Conditions to Watch

Following a notable 20% uptick in Worldcoin’s market value, analysts are now scrutinizing whether this upward momentum is sustainable or if a corrective phase is imminent. Market indicators suggest that the continuation of this rally hinges on several critical factors, including trading volume trends, broader market sentiment, and key resistance levels. Investors should monitor these variables closely to gauge the likelihood of a trend reversal or further appreciation in Worldcoin’s price.

Worldcoin could face rejection at this key resistance level

Source: WLD/USDT on TradingView

The market structure on the 1-day chart was still bearish. The Fibonacci levels showed that the 23.6% extension level at $0.567 was recently tested as support. Although the price has bounced, it has not breached the previous lower high at $0.8 yet.

Moving averages showed that the momentum was bearish. Moreover, the 50-period moving average lined up with the $0.8 resistance, reinforcing its strength. While this made the bears’ position look more defensible, the OBV revealed otherwise.

In early April, the OBV made higher lows while the price made lower lows. This bullish divergence was followed by a sharp price bounce by WLD from $0.57 to $0.75. Hence, more gains could follow.

Source: Coinglass

The 1-month liquidation heatmap revealed that the $0.8 and $0.66 levels were the key magnetic zones around its price. These levels are likely to attract Worldcoin’s price to them due to the presence of large liquidation levels.

A test of either level could be met with a reversal. This makes the $0.8 zone even more challenging for the bulls to break out from.

Overall, Worldcoin traders and investors should be cautious. An uptrend has not been established yet. Despite the OBV’s bullish divergence earlier this month, buying pressure has not been overwhelming. A breakout past $0.8 and a retest as support could be more feasible for long positions.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion