Worldcoin (WLD) has seen a 10% increase in price over the past 24 hours, making it one of the best performers among the top 100 altcoins. Currently, the price of WLD has reached $2.90.
However, according to multiple indicators, this rally could just be the beginning of a new up cycle that could push WLD even higher. Here are a few key reasons why:
Worldcoin breaks bearish dominance, volume follows
From June 6 to November 21, WLD has been oscillating in a descending triangle. A descending triangle is a classic bearish pattern that is usually formed by a downward sloping upper trendline and a horizontal lower trendline. This pattern usually means that sellers are in a dominant position and prices may continue to fall.
When the price breaks below a horizontal support level, it usually means that the downtrend is intensifying. However, so far, Worldcoin has managed to break through this support level, suggesting that the coin is entering a bullish phase.
If this trend continues, the price of Worldcoin could break through the $3 mark in the short term. But to verify this, further observation of other technical indicators is needed.
A key indicator supporting WLD's further rise is its trading volume. Trading volume reflects whether the market is actively participating in the trading of the token and directly affects the liquidity of the cryptocurrency. When trading volume increases, it usually means that more funds are flowing into the market, supporting price increases.
On the contrary, if the volume decreases, it indicates that the liquidity of the market is weakening, which may lead to a slowdown or correction in price fluctuations. More importantly, the relationship between volume and price can provide us with clues about price trends. Usually, rising prices are accompanied by increasing trading volume, which means that the trend is positive and the bullish momentum continues.
However, if the volume decreases as the price increases, it usually indicates that the upward momentum is weak and a reversal may occur. Fortunately, Worldcoin’s current price increase is consistent with the increase in volume, which shows that the market interest in the coin is rising and its upward trend is likely to continue.
WLD Price Prediction: Possible Rise to $4, Even $5
On the daily chart, the price of Worldcoin (WLD) has moved above the 20-period and 5-period exponential moving averages (EMA), which is an important technical indicator used to measure the trend strength of the market.
Generally speaking, when the EMA is below the price and trending up, the market is bullish, while when the EMA is above the price and trending down, it indicates a bearish market. Recently, WLD's EMA was below the price and trending up, which indicates that the current trend is bullish, which was seen during the sharp rise in price above $11.
If the current trend continues along historical lines, the price of Worldcoin may first test $3.92. If the bull market remains strong, WLD may break through $4 and even have the potential to hit the $5.10 level.
However, if the WLD price drops below the EMA again, the current bullish trend may be invalidated, causing the price to fail to reach the desired target. In this case, the WLD price may fall back to test the $2.07 support level.
