- Worldcoin bulls have made notable progress over the past two weeks, but are yet to overthrow the bears
- Demand for WLD slowed down in recent days as the price approached its local highs
Worldcoin [WLD] was challenging its local resistance level at $0.8 at press time. Technical indicators showed bears had the upper hand now, but this status quo may be beginning to change.
Bitcoin [BTC] saw some whale accumulation, despite the bearish trend of the past few weeks. And yet, its on-chain activity has mirrored bear market levels. Such a slowdown has historically been followed by price drops.
This could hurt Worldcoin’s recovery attempts on the charts.
Worldcoin could face rejection at this key resistance level
Source: WLD/USDT on TradingView
The market structure on the 1-day chart was still bearish. The Fibonacci levels showed that the 23.6% extension level at $0.567 was recently tested as support. Although the price has bounced, it has not breached the previous lower high at $0.8 yet.
Moving averages showed that the momentum was bearish. Moreover, the 50-period moving average lined up with the $0.8 resistance, reinforcing its strength. While this made the bears’ position look more defensible, the OBV revealed otherwise.
In early April, the OBV made higher lows while the price made lower lows. This bullish divergence was followed by a sharp price bounce by WLD from $0.57 to $0.75. Hence, more gains could follow.
The 1-month liquidation heatmap revealed that the $0.8 and $0.66 levels were the key magnetic zones around its price. These levels are likely to attract Worldcoin’s price to them due to the presence of large liquidation levels.
A test of either level could be met with a reversal. This makes the $0.8 zone even more challenging for the bulls to break out from.
Overall, Worldcoin traders and investors should be cautious. An uptrend has not been established yet. Despite the OBV’s bullish divergence earlier this month, buying pressure has not been overwhelming. A breakout past $0.8 and a retest as support could be more feasible for long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
