Worldcoin [WLD] has been on a remarkable uptrend, showing strong momentum in both its weekly and daily trading charts, leading to the achievement of its previously set target. However, there are indications that this upward trend might face a pause soon.
Worldcoin Achieves Target Price
Worldcoin has experienced a significant surge in value in the last 24 hours, with its price jumping by more than 15% to hit $3.35 at the time of writing.
The favorable market conditions, coupled with the impressive performance of WLD, have boosted the confidence of long-term investors.
Based on the data from IntoTheBlock, the number of investors holding WLD for over a year has seen a rise of almost 14% in the last 30 days.
It is worth noting that despite the recent price increase, only 19.18k WLD addresses were currently profitable, representing 59% of the total addresses holding WLD.
Potential Profit-Taking by Investors
Crypto analyst Ali Martinez pointed out that Worldcoin had met the target of a head and shoulders pattern, suggesting a possible market pullback in the near future.
Typically, when investors decide to take profits and close their positions, it could trigger a sell-off, increasing the likelihood of a price correction.
Reports from Santiment indicated a notable increase in WLD’s supply on exchanges, while the off-exchange supply showed a minor decrease.
The rise in exchange supply suggests that investors may be offloading their holdings, potentially leading to a correction in prices.
However, large holders of WLD, known as whales, were not actively engaging in trading activities, as evidenced by the supply held in the top addresses.
Over the past 24 hours, the token’s Long/Short Ratio dropped, suggesting a higher number of short positions compared to long positions, signaling a growing bearish sentiment.
In addition, the technical analysis using Chaikin Money Flow (CMF) pointed towards an ongoing sell-off. If this downward movement persists, Worldcoin could find support around $2.9.
A breach below that crucial level could potentially drive the token’s price lower towards $2.4.
However, a shift in market sentiment and continued bullish pressure on WLD could propel the token to challenge its next resistance level at $4 in the upcoming days.
But to achieve this milestone, Worldcoin needs to surpass its current resistance at $3.6, which has been acting as a significant hurdle in its recent trading sessions.