What to know:
- Worldcoin tests key support near $0.27 as falling wedge hints at reversal
- RSI near oversold territory while MACD shows early signs of bullish crossover
- Analyst eyes $0.31 to $0.85 targets if buying pressure confirms a breakout
Worldcoin (WLD) tested a key support level near $0.2719 on March 29 as selling pressure slowed. The altcoin is attempting to rebound from a falling wedge pattern on the daily chart.
According to crypto analyst Profit Demon (@profitdemon), this structure suggests a potential bullish reversal. The analysis was shared in a recent X post alongside a chart highlighting the setup.
According to TradingView data, WLD’s price is currently above a critical support zone near recent lows. The falling wedge followed a long downtrend with decreasing highs and less volatile movements.
The Lower Edge of a Falling Wedge
As per Profit Demon, Worldcoin is rebounding from the bottom edge of the falling wedge on the daily chart. Price compression is reflected by the rising trendline of the falling wedge.
The analyst said that the Worldcoin price is still above a key support zone. Bullish momentum seems to be forming again from here. However, confirmation will require strong continued buying pressure and increased volume.
Also Read | Worldcoin (WLD) Could Target $0.60–$1.50 if Falling Wedge Support Holds
Early Signs of a Momentum Shift
According to the TradingView chart, the RSI has fallen to about 33. As such, WLD appears to be oversold. In addition, selling pressure may be waning. The MACD is still negative, but there are early indications of a bullish crossover due to converging lines.
Additionally, the histogram bars have shrunk, which indicates a decrease in bearish momentum. WLD’s price is below all three moving averages (20, 50, & 200 EMAs).
Thus, overall, the trend continues downward. If the 20 EMA can be reclaimed, then there could be some short-term momentum.
Participation Drops In Derivative Markets
Open interest on CoinGlass decreased by approximately 3.71% in the last day. As a result, speculation in the market appears to be decreasing.
Futures volume has also decreased significantly, which suggests fewer short-term traders. Funding rates remain positive but only mildly.
CoinGlass reported a slight positive funding rate at 0.0043%. This indicates that futures traders still hold a very minor bullish sentiment.
Potential For a Bullish Breakout
If support holds and bulls continue to gain strength, WLD’s price could increase. Profit Demon indicated several possible target prices of $0.31, $0.43, $0.66, and $0.85. These are based upon previous resistance levels and liquidity points.
Confirmation of a breakout to the upside would validate that WLD has entered into a bullish environment. Conversely, if the price breaks through the support level, it could invalidate the structure of the wedge and potentially create new local lows for WLD.
Therefore, sustaining WLD below its support could add more downward pressure and strengthen bearish momentum.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | Worldcoin (WLD) Holds Wedge Support: Is a Bounce Toward $0.62 Next?
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