Key Takeaways
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.
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.
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.
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 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