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Worldcoin (WLD) Price Wobbles Near $1.20 — Key Support Level in Danger

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • A bearish breakout below key support
  • RSI rebound from oversold territory
  • Potential for corrective bounce or deeper decline

Worldcoin (WLD) has completed a corrective phase following the recent high of $4.20 on Dec. 6. The price broke below the critical horizontal support zone, suggesting bearish momentum.

The price currently remains at a critical juncture around the 1.29 level, suggesting pivotal price movements ahead and a potential trend reversal.

WLD Price Analysis

The daily chart of WLD reveals a pronounced downtrend following the peak at $4.20, marking the completion of wave (C) on Dec. 6 within a corrective structure. The price has broken below a critical horizontal support zone at $1.75, confirming bearish momentum.

This decline aligns with the 0.786 Fibonacci retracement at $1.92, which failed to hold as support. After that, the price made an even deeper decline to the 1.29 level, where it currently trades.

The daily Relative Strength Index (RSI) dipped into oversold territory, hinting at the potential exhaustion of selling pressure.

WLD price analysis
WLDUSD testing horizontal support | Credit: Nikola Lazic/TradingView 

Further analysis shows that WLD’s price action was confined to a descending triangle, typically a bullish reversal pattern. Despite the bullish signs, a breakout to the downside invalidated the bullish case.

However, as the price now trades in the oversold region, an upturn leading to a decisive breakout above the upper triangle boundary could shift sentiment, targeting the 0.618 Fibonacci retracement at $2.40.

Conversely, continued bearish pressure led to the price consolidation below $1.60, increasing the risk of further declines below $1.29. The RSI’s recovery from oversold levels will be key to confirming bullish reversal attempts. 

Overall, WLD remains at a critical juncture where reclaiming lost support zones could initiate a trend reversal.

WLD Price Prediction

On the 1-hour chart, WLD has completed a clear ABC correction, with wave (C) terminating near the $0.96, aligning with the 0.786 Fibonacci extension. This area has sparked a minor bounce, supported by an RSI recovery from oversold conditions. 

The immediate price action suggests a potential corrective rally targeting $1.61 (0.5 Fibonacci extension) or $1.88 (0.382 Fibonacci extension). 

WLD price prediction
WLDUSD two scenarios ahead | Credit: Nikola Lazic/TradingView 

WLD may attempt to break above $1.88 if bullish momentum strengthens, opening the path towards $2.40, aligning with the 0.618 Fibonacci retracement. 

This scenario relies heavily on sustained buying pressure and RSI crossing above the midline, signaling renewed bullish sentiment. 

Alternatively, failure to hold above $1.29 (lower level of the horizontal zone) could trigger a retest of $0.96, with a deeper decline possible towards the $0.48 region if bearish dominance persists.

The formation of higher lows and bullish divergence on the RSI would provide early signs of a potential trend reversal.

Key Levels to Watch

  • Immediate Resistance: $1.29 (0.5 Fibonacci retracement).
  • Key Support: $1.29 (horizontal support lower level).
  • Critical Support: $0.96 (1 Fibonacci extension).
  • Short-Term Target: Above $1.88 if corrective rally holds.
  • Invalidation Zone: Below $0.96, signaling deeper downside potential.
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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