Analysis Date: November 3, 2024
Current Price: 1.663 USDT
General Trend: Bearish

General Context

WLD (Worldcoin) has shown a strong bearish trend in recent weeks, characterized by multiple market structure changes and breaks (BOS - Break of Structure) indicating sustained selling pressure. On the 1-hour timeframe, support and resistance levels are acting as key zones, with the price forming new lows and lower highs. This suggests that the downtrend could continue in the short term if there is no significant change in buying momentum.

Market Structure Analysis

  1. Break of Structure (BOS) and Change of Character (CHoCH):

    • Throughout the chart, multiple BOS and CHoCH can be seen. These indicators are signals of significant changes in market structure, in this case, pointing towards a continuation of the downtrend.

    • The breaks (BOS) have been seen continuously, reflecting that buyers have not been able to regain control and that sellers continue to dominate the market. Additionally, the changes of character (CHoCH) suggest that recovery attempts are brief and quickly reversed.

  2. Equilibrium Areas (EQH and EQL):

    • Resistance areas (EQH - Equal Highs) and support (EQL - Equal Lows) stand out as zones where the price has shown exhaustion or consolidation. However, the price has continued to break these lower levels, confirming the strong selling pressure in the WLD market.

    • The break of support areas is particularly important, as it demonstrates a lack of buying interest at current levels and suggests that the market may be looking for lower prices.

  3. Technical Indicators:

    • The 'All-In-One' indicator shows sell signals and has generated several red points, which are indicative of sustained selling pressure.

    • The impulse line has mostly been in negative values, suggesting strong bearish momentum. Additionally, the value of -1.678 in the overall momentum indicator reflects the dominance of sellers in the current structure.

Short-Term Projection

  • Current Support: If the price continues to drop, the next key support level is around 1.6 USDT, which could act as an accumulation zone for buyers. However, if this area is broken, WLD could continue toward even lower levels.

  • Short-Term Resistance: On the upside, immediate resistance is located in the range of 1.7 to 1.75 USDT, where the price previously attempted to regain ground. A break and consolidation above this zone could suggest a temporary reversal or, at least, a correction in the downtrend.

Conclusion

WLD is in a clear downtrend in the short term, with continuous structure breaks and negative momentum. Although the nearby support at 1.6 USDT could provide a bounce level, the dominant selling pressure suggests that buyers should proceed with caution. Until the price manages to consolidate above the key resistance at 1.75 USDT, the downtrend is likely to persist.

This analysis suggests that traders should closely monitor the mentioned support and resistance levels, especially considering that a continuation of the downtrend could offer selling opportunities. Alternatively, a change in momentum and recovery above 1.75 USDT could provide signals of a possible trend reversal.


Carlos Mercado
Cartagena, Colombia
Crypto Enthusiast


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