WorldCoin Price Falls 20% – Corrective Pattern Points to More WLD Downside
Is There More Downside for WLD? | Credit: Getty Images
Key Takeaways
- The WLD price bounced on April 13 but has nearly returned to its previous lows.
- The price trades inside a corrective pattern and above a horizontal support area.
- Will WLD break down from this confluence of supports or will it bounce instead?
Worldcoin was one of the best performing crypto assets in the beginning of 2024, increasing parabolically until its all-time high price on March 10. However, the price has fallen by nearly 60% since the all-time high.
The decrease accelerated in the past two days, and the WLD price is at risk of faling below a confluence of support levels. If this happens, the rate of decrease could accelerate further, leading to a prolonged bearish trend.
What Caused the WLD Price Fall?
The WLD price has traded inside an ascending parallel channel since April 13. These channels usually contain corrective movements, meaning that an eventual breakdown from it is expected. More recently, the channel rejected the WLD price on May 6.
During the next movement, the price failed to even reach the channel’s resistance trend line. Rather, it created a bearish candlestick on April 13 and has fallen 20% since. The failure to reach the channel’s resistance is considered a bearish sign.
On top of this, the RSI fell below 50 and is at risk of breaking down from its ascending support trend line (green).
Since the chnanel’s support trend lien is very close to the $4.50 horizontal support area, a breakdown from it could be the catalyst to an even sharper fall.
Worldcoin Price Prediction: Wave Count Shows Another Low
The daily Worldcoin price chart shows a nearly 1,100% increase in value between September 2023 and March 2024 (white). The increase culminated with an all-time high price of $11.97 on March 10. WLD started a five-wave downward movement afterward (black).
If the wave count is accurate, WLD has just started the fifth and final wave of this decrease. The previously outlined ascending parallel channel in wave four aligns with this proposed count.
If the Worldcoin price breaks down from the channel, it will also likely fall below the $4.50 horizontal support area. This is a critical area since it provided resistance in 2023 before the price broke out and rallied to its all-time high. So, a decline below it will confirm the bearish trend.
The most likely area for the bottom of the movement is between $1.79-$1.97. The 1.61 external Fibonacci retracement of wave four creates the upper portion of this range (black), while the lower portion is created by giving waves one and five a 1:1 ratio.
Despite this bearish WLD price prediction, breaking out from the channel can lead to a notable rally toward $7.40. Currently, this remains the less probable possibility.
Downward Trend Likely to Accelerate Below $5
The ongoing WLD price fall since the all-time high shows no signs of waning down. To the contrary, the decline could accelerate with a breakdown from the ascending parallel channel and $4.50 horizontal support area. If this happens, the next target will be between $1.79 and $1.97.
