Key Takeaways
After reaching a yearly high of $4.20 on Dec. 6, the price of Worldcoin (WLD) started reverting to its horizontal demand zone.
Its recent interaction at $19 on Jan. 20 resulted in a 28% bounce, but the descending channel still constrains the price.
The 4-hour chart illustrates that WLD consolidates in a descending channel after completing a likely impulsive structure to a high of $4.15.
The price recently rebounded from the $1.90 region, which aligns with the 0.786 Fibonacci retracement, and is currently near the $2.38 level (0.618 retracement) as it bounced 28%.
The Relative Strength Index (RSI) on the 4-hour timeframe remains neutral, reflecting balanced momentum between buyers and sellers.
However, a descending resistance line reinforces bearish sentiment unless broken decisively. Significant resistance lies at $2.38, corresponding to the 0.618 Fibonacci level, followed by $2.72 (0.5 retracement).
A breakout above these levels could signal the end of the corrective phase.
Notably, the long-term support zone near $1.29 aligns with a full 1.0 Fibonacci extension of the prior move, marking a critical level that, if breached, could invalidate recovery scenarios.
On the 1-hour chart, WLD appears to form a potential bottom structure within the descending channel. Wave count analysis suggests that the price is likely transitioning into a minor wave (v) or setting up for a breakout.
The immediate target lies near $2.38 (0.618 Fibonacci), a critical pivot for short-term bullish confirmation.
Should the price break above $2.38, the next target is $3.06 (0.382 Fibonacci). Conversely, failure to sustain above the $2.24 support could result in a retest of the $1.90 region, with deeper retracements extending to $1.29 if bearish momentum intensifies.
RSI momentum on the 1-hour chart shows a slight recovery, but a clear divergence is needed to confirm bullish strength.
Key indicators to watch include volume spikes and sustained price action above the channel’s descending resistance line.
Key Levels to Watch
In conclusion, WLD remains at a pivotal juncture, with breakout scenarios dependent on momentum and volume dynamics.
Monitoring key Fibonacci levels and the descending channel’s behavior will provide further insights into the next price trajectory.