Worldcoin [WLD] in consolidation — Will it break $1.84 or drop to lower levels?

Worldcoin [WLD] in consolidation — Will it break $1.84 or drop to…

Worldcoin [WLD] recently found itself in a period of tight consolidation, a critical juncture that could set the tone for short-term market sentiment.

The cryptocurrency was testing the crucial $1.32 resistance level, signaling a potential breakout towards $1.84 on the upside or a drop to $0.90 if support fails to hold.

Over the last 24 hours, WLD managed to gain 3.90%, and its weekly performance surged by 4.78% by the latest update. Price action has been confined between $1.20 and $1.32, establishing a consolidation range according to Coingecko.

A series of higher lows suggest that accumulation is taking place, alongside a noticeable bullish momentum. The recent attempt to break above $1.33 signifies an uptick in buyer interest.

Key Levels for WLD: Support and Resistance

WLD faces immediate resistance at $1.33, serving as the upper limit of its ongoing consolidation phase.

A successful breach above this level could pave the way for a test of $1.84, standing as the next significant resistance barrier.

Conversely, the $1.20 level acts as a crucial support zone, and a breakdown below it might usher in a decline towards $0.90. Traders are closely monitoring these pivotal levels to determine the digital asset’s next move.

Insights from Technical Indicators and Market Sentiment

The 20-period Simple Moving Average (SMA) at $1.2576 functions as a dynamic support level. Notably, the upper Bollinger Band sits at $1.3195, while the lower band lies at $1.1956, indicating subdued volatility levels. A breakout beyond these bands could signal a shift in market momentum.

The Directional Movement Index (DMI) reveals a +DI reading of 22.4575 and a -DI reading of 26.6357, implying a slight seller bias.

Despite this, the ADX at 14.3741 suggests a lack of robust trend momentum, reinforcing the sideways movement. A potential crossover with the +DI rising above the -DI and an increasing ADX might bolster buying pressure.

The Relative Strength Index (RSI) currently stands at 56.54, indicating a neutral to mildly bullish momentum. A push beyond 60 on the RSI could embolden buyers to drive prices higher, while a drop below 50 may hint at renewed selling interest.

Understanding the Landscape Through On-Chain Data and Market Participation

Analysis of on-chain data by IntoTheBlock reveals that at the present price of $1.32, only 0.63% (239 addresses) are in profit, with a vast majority of 96.77% (36.64k addresses) underwater. Additionally, another 2.60% (986 addresses) hold positions at break-even.

The Bulls and Bears chart indicates a balanced sentiment, with 137 bulls and 140 bears observed over the past week. This signals a tight tug of war between buyers and sellers, highlighting the absence of a dominant force.

The next move for WLD hinges on its ability to breach the $1.34 mark or succumb to further selling pressure, a development closely watched by traders for confirmation.

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