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Worldcoin (WLD) Price Retests Key Horizontal Zone for Support — Key Levels to Watch

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • WLD bounced from the horizontal support zone.
  • Descending channel resistance interaction has been made.
  • Two outcomes ahead depending on the interaction result.

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. 

WLD Price Analysis

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%.

WLD price analysis
WLDUSD consolidates in a descending channel | Credit: Nikola Lazic/TradingView 

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.

WLD Price Prediction

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.

WLD price prediction
WLDUSD at a pivot point, with clear breakout scenarios | Credit: Nikola Lazic/TradingView 

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

  • Immediate Resistance: $2.38 (0.618 Fibonacci retracement).
  • Secondary Resistance: $3.06 (0.382 Fibonacci retracement).
  • Immediate Support: $2.24 (local pivot).
  • Critical Support: $1.90 (0.786 Fibonacci retracement) and $1.29 (1.0 Fibonacci extension).
  • Breakout Target: Above $3.06, aligning with potential wave (iii).
  • Invalidation Zone: Below $1.29, signaling extended downside risks.

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.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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