Jacob: Worldcoin anticipates a ‘Golden Cross,’ how will this impact traders?
Worldcoin [WLD] has seen an impressive surge in its price over the past day, rising by 12.05% to reach $2.43 currently.
This significant uptick has drawn the attention of traders as the altcoin approaches important resistance levels. The way Worldcoin reacts to these thresholds could shape its price direction in the short and long term.
An examination of the altcoin’s price movement has unveiled positive signals and potential barriers that could influence its trajectory in the upcoming week.
Focus on Resistance Levels
The recent price spike in Worldcoin has positioned it near crucial resistance levels on the charts.
The primary obstacle, identified as R1 ($2.5042), stands as a pivotal resistance point. A breakthrough above this level could prolong the bullish trend of Worldcoin, potentially leading to tests at R2 ($2.7647) and R3 ($3.1559), where traders might consider securing profits.
Furthermore, the chart has hinted at a possible “Golden Cross” as the 50-day Moving Average (MA) approaches a convergence with the 200-day MA – an optimistic technical pattern.
If Worldcoin manages to exceed the 50-day MA, positioned around $3.13 presently, it could confirm a sustained upward trend on the charts.
However, failure to surpass R1 could result in a brief pullback or a period of consolidation, pausing the uptrend.
Crucial Support Levels for Potential Retracement
In the scenario of a price retreat, several essential support levels may serve as safeguards for Worldcoin.
The primary support level is at S1 ($1.7517), closely linked to a previous consolidation point. A drop to this level could signal a healthy retracement before WLD resumes its upward movement. S2 ($1.4888) would become the subsequent critical support level if additional selling pressure emerges.
This range has functioned as a foundation during previous price actions. A breach of it could imply a deeper correction.
Lastly, S3 ($1.1808) presents a more pessimistic outlook for Worldcoin in the short run.
Exercise Caution based on Momentum and RSI
Worldcoin’s Relative Strength Index (RSI) is at 65.05, just below the overbought threshold. This indicates that while Worldcoin exhibits strong bullish momentum, it might exhaust this momentum soon.
In simple terms, the cryptocurrency could be approaching a point where buying interest starts to decelerate. If the RSI surges above 70, it could signal an overbought condition, potentially leading to a short-term pullback or consolidation.
In addition, Worldcoin’s price appears to be nearing the upper limit of its Bollinger Bands – indicating increased volatility. Should the price become excessively stretched, traders should be on the lookout for signs of a retracement.
Currently, Worldcoin appears to be on an upward trajectory. Nevertheless, indicators hint at a possible correction in the near future.