Worldcoin (WLD) rose strongly on Monday, March 23. Buyers defended the $0.3075 support on February 6 and forced an 8.46% rally from the day’s low at $0.3039.
WLD has fallen back since reaching $0.3296 and was trading at $0.3175 at the time of writing. Will the altcoin manage to gather strength for its next rally, or should investors expect more losses?
Worldcoin falls below the $0.345 local support
Worldcoin’s long-term trend was clearly bearish. WLD, measured at the opening of the day during the 10/10 crash, lost 73.57% in less than six months.
This alone was not an extraordinary figure. Many altcoins are experiencing similar or even more serious losses. However, certain altcoins also managed to show short-term bullish strength in March.
Bitcoin (BTC)’s decline above the $70,000 market has given some altcoins the momentum to move higher and change their short-term trends in an upward direction. Worldcoin was not one of them.
Instead, WLD recorded new lows on the daily chart. The local support at $0.345 in February was breached and the price decline was temporarily halted at the extremes of the early February crash.
Investors’ call to action – Sell the return
The 4-hour chart showed a bearish pattern for Worldcoin. This downtrend occurred on March 19 when WLD broke below the low at $0.346.
This downward impulse was used to draw a series of Fibonacci retracement levels (white). At the time of writing, the 23.6% retracement level at $0.326 was acting as resistance.
If it turns into resistance, traders can expect WLD to rise to pocket gold in the $0.354-$0.366 range.
The RSI was just below neutral 50 and the CMF managed to break above +0.05, indicating strong capital inflows. If demand and momentum continues, Worldcoin could rise even higher.
However, investors need to remember WLD’s long-term trend and use the price rally towards $0.366 to sell the altcoin.
If a rally can surpass the local high at $0.406, the swing structure will turn bullish and invalidate the current bearish trend.
Final Summary
- Like Bitcoin and many altcoins, Worldcoin’s long-term trend has been bearish, but WLD has shown relative weakness in recent days.
- This weakness has led to a downward structural shift on the 4-hour chart and investors can wait to sell this rise.
