The price of Worldcoin (WLD) has increased by 10% in the last 24 hours, making it one of the best-performing altcoins in the top 100. This price increase places the token's value at $2.90.
However, according to some indicators, this increase may just be the beginning of a sustained rally that pushes WLD higher. Here’s how to do it.
Worldcoin rises through declining dominance, volume follows
From June 6 to November 21, WLD traded within a descending triangle. A descending triangle is a bearish chart pattern characterized by a downward sloping upper trend line and a flat, horizontal lower trend line. This formation often signals potential bearish price volatility as sellers gain control.
When the price of the cryptocurrency breaks below horizontal support, it indicates that a bearish trend may strengthen. But as this article is written, Worldcoin has broken out of it, indicating that the altcoin is on a bullish path.
If maintained, the price increase of Worldcoin could be above $3 in the short term. However, to confirm this, one must assess the position of other metrics.
Daily analysis of Worldcoin. Source: TradingView
An additional supporting metric is the volume of WLD. Volume indicates whether the market is actively trading the token or not. As it increases, higher liquidity is flowing into the cryptocurrency.
On the other hand, if the volume decreases, the cryptocurrency will be less liquid. Moreover, volume can indicate the direction in which the price may move. Typically, when volume increases alongside price, it means an upward trend.
However, decreasing volume with increasing price indicates that the bullish trend is weak. Since Worldcoin's price increase coincides with rising volume, it suggests that the value of the altcoin may continue to rise.
Worldcoin volume. Source: Santiment
WLD price prediction: $4, then $5 may come
On the daily chart, the price of Worldcoin has risen above the 20 and 5 period Exponential Moving Averages (EMA), a technical indicator that measures the trend of the cryptocurrency.
When the indicator is declining and above the price, the trend is bearish. On the other hand, if the EMA line is below the price and rising, the trend is bullish. The last time this happened, the price of WLD rose above $11.
If the pattern aligns with historical trends, the price of Worldcoin could rise to $3.92. If the bulls maintain the trend, then the altcoin could climb above $4 and may reach $5.10.
Daily analysis of Worldcooin. Source: TradingView
However, if the token drops below the EMA again, the WLD price prediction may not come true. Instead, it could drop to $2.07.