Worldcoin [WLD] showcased significant anticipatory activity leading up to an upcoming announcement from Sam Altman, the founder of OpenAI. The announcement, scheduled for the 17th of October, will also feature Alex Blania, the CEO of Tools for Humanity (TFH).
Just two days prior to the event, the altcoin experienced a surge of 12% within a span of 24 hours, climbing from $2.0 to $2.3.
Historically, many major cryptocurrency events have resulted in instances of ‘selling the news’. Hence, the recent surge might have been a case of anticipation that could potentially be unwound during or post the event.
Given this scenario, what are the crucial levels that investors should keep an eye on?
Key Levels to Monitor
Starting from August, the price movement of WLD has been establishing an ascending channel (yellow).
Notably, the recent surge validated $2.0 as an immediate support level (white), while the $2.5 threshold represented a convergence of the channel’s upper range and a resistance zone (red).
Despite nearing overbought territory based on chart indicators, WLD still exhibited an attractive risk-reward ratio in case the uptrend continues post the event.
There exists a significant potential for an 80% increase if WLD surpasses the $2.5 barrier and progresses towards the $4.5 objective. As a result, $2.0, $2.5, and $4.5 emerge as pivotal targets for near and medium-term observation.
Optimistic Outlook in the Futures Market
Meanwhile, market speculators maintained their bullish stance despite the resistance encountered at $2.5. On the 14th of October, approximately 5 million WLD contracts were included, leading to a 15% rise in open interest rates (OI).
This surge indicated a heightened market interest in WLD within the Futures market.
The positive Funding Rates further contributed to the optimistic sentiment prevailing among speculators engaged in the Futures market.
Nevertheless, the escalated leverage also brought along a heightened risk of liquidation and volatility, events that might unfold on Thursday during the anticipated address from Altman and Blania.
With that in mind, the range between $1.9 and $2.1 emerged as a critical support zone, highlighted in white on the charts. Notably, according to data from IntoTheBlock, significant holdings of WLD coins (2.59 billion) valued around $6 billion were acquired at this level.
In essence, $2 stands out as a pivotal support level for WLD traders and investors. However, the crucial test remains at $2.5, which needs to transition into a support level for WLD to pursue the envisioned 80% increase if aiming for the $4.5 target.
Nevertheless, a dip below $2 would nullify the bullish outlook discussed above.
Disclaimer: The information shared does not serve as financial, investment, trading, or any other form of advice and presents the personal opinion of the writer.