Worldcoin [WLD] has demonstrated outstanding performance on both its weekly and daily charts, propelling the token to achieve a previously expected milestone. Nevertheless, indications have surfaced suggesting that this upward trend may soon come to a pause.
Worldcoin Achieves Targeted Milestone
Over the past 24 hours, Worldcoin has experienced a substantial increase in value, surging over 15% and reaching $3.35 as of the current moment.
The favorable market conditions combined with WLD’s impressive performance have fostered a sense of assurance among long-term investors.
According to CryptoCrypto’s analysis of IntoTheBlock’s data, the number of investors holding WLD for more than a year has surged by nearly 14% in the past month alone.
Despite the recent surge in price, it is notable that only 19.18k WLD addresses were considered “in profit,” accounting for 59% of the total WLD addresses.
Is it Time for Investors to Secure Profits?
Meanwhile, Ali Martinez, a respected crypto analyst, indicated via a tweet that WLD had reached the anticipated target of a head and shoulders pattern, signaling a potential retracement in the near future.
Typically, such retracements occur when investors opt to secure profits and exit their positions, potentially triggering a sell-off and heightening the likelihood of a price correction.
Charts from Santiment revealed a notable increase in WLD’s supply on exchanges, whereas the supply off exchanges saw a minor decline.
An escalation in exchange supply implies that investors have been offloading their holdings, potentially leading to a price adjustment.
However, large-scale holders (whales) appeared to be relatively inactive in trading the token, as evident from the supply held by the top addresses.
The Long/Short Ratio for the token has also witnessed a decrease within the 24-hour window, indicating a greater prevalence of short positions compared to long positions – a signal of mounting bearish sentiment.
In addition, Worldcoin’s Chaikin Money Flow (CMF) technical indicator implies an existing sell-off. If this trend persists and results in price depreciation, WLD could find a support level around $2.9.
A breach beneath this support level might drive the token further down towards $2.4.
Nevertheless, if the market sentiment shifts and WLD bulls persist in their vigorous push, the token could potentially target its subsequent resistance at $4 in the upcoming days.
However, for such an advance to occur, WLD must first surpass its current resistance barrier at $3.6, where it has been facing repeated tests.