Worldcoin (WLD) has captured investor attention with a notable 15% surge in just 24 hours, pushing its price to $3.35. This spike has generated optimism among traders, who are now questioning whether it marks the start of a larger rally or simply a temporary price spike. As market conditions remain volatile, there are growing signs that the rally could face challenges, with traders closely monitoring critical support and resistance levels.
What’s Driving Worldcoin’s Surge?
Worldcoin’s recent price increase comes amidst stronger market conditions and a renewed sense of confidence from investors. Over the past month, long-term holders have increased by 14%, a sign of growing interest in the token. However, only 59% of Worldcoin addresses are currently in profit, indicating that not all investors are benefiting equally from the price movement. Crypto analyst Ali Martinez has pointed out a potential head and shoulders pattern forming, which may signal a reversal of the recent uptrend.
#Worldcoin $WLD has no significant supply barriers ahead. As long as the $2.10 support holds, the future looks bright! pic.twitter.com/z72fokCboR
— Ali (@ali_charts) November 25, 2024
Additionally, the rising supply of Worldcoin on exchanges raises concerns. Increased selling activity is evident, as fewer tokens are being held off exchanges. This trend could place downward pressure on the price, especially as more sellers look to capitalize on the recent gains.
Bearish Indicators and Resistance Levels
Bearish sentiment is building as the Long/Short Ratio reveals more short positions than long ones. This shift reflects growing uncertainty among traders. The Chaikin Money Flow indicator further suggests that selling pressure continues to mount. Should this trend persist, Worldcoin’s price may fall to $2.9, with deeper declines potentially targeting the $2.4 mark.
However, there is still hope for further gains. To reach $4, Worldcoin must first overcome resistance at $3.6. A breakout above this level could reignite buying momentum and drive prices higher. Whale activity could be a key factor here; if large holders become more active, their buying power could shift the market sentiment.
The Path Ahead for Worldcoin
While Worldcoin’s 15% surge has sparked excitement, the market remains divided. Some traders are optimistic about a continued rally, while others are wary of a potential pullback. The next few days will be crucial in determining whether Worldcoin can maintain its bullish momentum or face a correction. Investors will be watching closely as the token’s price action continues to unfold, with $3.6 acting as a key level to watch for signs of further growth or reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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