- WLD noted bearish momentum on the 1-day and 4-hour charts, signifying seller dominance
- Despite its bearish signals, the price action showed a short-term rally may be possible
Worldcoin [WLD] has shed 17.65% of its value in under three days. In fact, technical analysis revealed that its higher timeframe trend was firmly bearish at press time.
And yet, there may be a buying opportunity. Not for investors, but for traders. The potential partnership with VISA might help turn the sentiment around over the next week.
WLD is bearish on multiple timeframes, but could see a bounce from $0.8 support
Source: WLD/USDT on TradingView
The 1-day timeframe revealed that the $1-level had been flipped to resistance in late February. The bullish hopes for long-term Worldcoin investors were severely affected in late January, when the bullish order block at $1.5 (red) was turned from a demand zone to a supply zone.
The bearish market structure of WLD has been present since early 2025 when the price fell below the $2-level. This level marked the higher low from November which was part of the strong rally towards the end of 2024. Like most altcoins, this two-month rally has been entirely wiped out since.
The RSI has been below neutral 50 since mid-January. This can be seen as a sign of persistent bearish momentum. It was also in agreement with the bearish price action of the past three months. The OBV has also been on a downtrend, reflecting steady selling pressure.
Over the past three weeks, Worldcoin’s OBV picked up slightly though, reflecting some accumulation. The RSI also corrected itself and climbed higher from oversold conditions. This did not signal a trend reversal though and at press time, the outlook on the daily timeframe was still bearish.
Source: WLD/USDT on TradingView
WLD’s 4-hour chart outlined the past three weeks’ consolidation phase. A range formation (purple) was spotted from $0.81 to $0.97. The mid-range level at $0.89 acted as both support and resistance earlier in March.
Although the strong losses over the past week took the RSI to 29, there may be a good chance of a bullish reversal. The range lows are likely to be defended because the OBV has not dived below its local lows yet.
Therefore, despite the swift losses recently, Worldcoin might present a buying opportunity to swing traders.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
