Worldcoin [WLD] Awaits a 'Golden Cross,' What Does This Mean for Traders?

An analysis of the altcoin's price action revealed bullish signals and potential obstacles that could influence its trajectory over the next week.

Worldcoin [WLD] price encountered critical resistance zones after a 12.05% surge in the last 24 hours. Surpassing these levels could set the stage for a sustained uptrend, while failure might lead to a short-term pullback or consolidation.

Worldcoin’s price has been on an uptrend, fueled by increasing buying pressure. After a 12.05% surge in the last 24 hours, the altcoin encountered critical resistance levels on the 4-hour chart.

Crucial resistance levels in focus

Worldcoin’s recent surge brought it closer to critical resistance levels on the TradingView chart. The first significant hurdle, marked by R1 ($2.5042), represented a crucial resistance zone. If Worldcoin broke above this level, it could extend its bullish momentum.

Traders might anticipate potential support levels at R2 ($2.7647) and R3 ($3.1559), where traders might look to secure profits or anticipate further bullish continuation.

A promising sign on the horizon was the potential formation of a “Golden Cross.” The 50-day Moving Average (MA) approached a crossover with the 200-day MA, indicating a bullish technical pattern. If Worldcoin surpassed the 50-day MA, placed at around $3.13 at press time, it could confirm a sustained uptrend on the charts.

However, failure to break through R1 might lead to a short-term pullback or consolidation period, stalling the uptrend. In this scenario, traders could expect a potential retracement before the next leg of the uptrend.

Key support levels to watch for in the case of a price pullback

In the event of a price retracement, several key support levels could provide a safety net for Worldcoin. The first notable support level was at S1 ($1.7517), which closely aligned with a previous consolidation point. A dip to this level could indicate a healthy retracement before WLD resumes its uptrend.

If further selling pressure arose, S2 ($1.4888) would become the next critical support level. This zone previously served as a base during previous price movements. And, breaching it could mean a deeper correction.

Finally, S3 ($1.1808) represented a more bearish outlook for Worldcoin in the short term.

RSI suggests caution as Worldcoin nears overbought territory

The Relative Strength Index (RSI) for Worldcoin stood at 65.05, just below the overbought territory, according to the TradingView chart. This implied that while Worldcoin had strong bullish momentum, it could exhaust itself soon.

Simply put, the crypto-asset could be nearing a point where buying interest begins to slow down. If the RSI climbs above 70, it would indicate an overbought condition, potentially leading to a short-term pullback or consolidation.

Also, Worldcoin’s price seemed to be nearing the upper boundary of its Bollinger Bands – A sign of greater volatility. Should the price become overextended, traders may need to watch for signs of a retracement.

At the time of writing, Worldcoin appeared to be riding an uptrend, with several technical indicators suggesting there could be potential for further gains or a corrective move in the short term.

The above is the detailed content of Worldcoin [WLD] Awaits a 'Golden Cross,' What Does This Mean for Traders?. For more information, please follow other related articles on the PHP Chinese website!