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Worldcoin is poised for 17% rally as as technical indicators signal bullish momentum

  • Worldcoin price finds support and bounces 9% from the weekly support level around $2.183.
  • Technical analysis shows that WLD has formed a bullish divergence on a momentum indicator.
  • A daily candlestick close below $2.145 would invalidate the bullish thesis.

Worldcoin (WLD) price revisited the weekly support level on Thursday and bounced 9% from the support level to trade up 3.5% at $2.379 at the time of writing. Technical analysis indicates that WLD, an AI-driven token, has formed a bullish divergence on a momentum indicator, signaling potential upside in the upcoming days.

Worldcoin price shows potential for a rally

Worldcoin price retested its weekly support level of $2.183 on Thursday and bounced 9% to $2.379, where it is currently trading.

Additionally, the lower low on July 3 on the 4-hour chart does not reflect the Relative Strength Index’s (RSI) higher highs for the same period. This development is termed a bullish divergence and often leads to the reversal of the trend or a short-term rally.

If the $2.183 level holds, WLD could rally 17% from its current trading price of $2.379 to tag $2.799. This is the 61.8% price retracement level drawn from a swing high of $3.203 on June 20 to a swing low of $2.145 on July 3. This level roughly coincides with the daily resistance level of $2.797.

Moreover, if WLD closes above $2.799, it could extend an additional 15% rally to retest its June 20 daily high of $3.203.

WLD/USDT 4-hour chart

WLD/USDT 4-hour chart

However, if the WLD daily candlestick closes below $2.145 and forms a lower low on the daily time frame, it could lead to a change in market structure favoring the bears. Thus, this change in market structure could invalidate the bullish thesis, leading to a 4% decline in the WLD price to revisit its Jan 23 daily low of $2.071.

Author

Manish Chhetri

Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.

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