- WLD has been showing signs of a potential rebound as per the TD Sequential indicator
- Worldcoin’s (WLD) charts flashed multiple technical signals that may hint at a potential rebound
Worldcoin (WLD) is in an interesting position right now. Within days of the altcoin noting some losses on the charts, the crypto caught the attention of traders and analysts after its technical indicators flashed a bullish signal.
In fact, AMBCrypto’s analysis revealed that Worldcoin (WLD) formed a rounded bottom pattern, often seen as a bullish signal in technical analysis. This pattern often implies that after a period of decline, selling pressure has diminished, and buyers are slowly gaining control – Setting the stage for a potential upside.
Source: Coinglass
The Fear and Greed Index, displayed alongside the price chart, had a reading on 50 at press time.
The aforementioned reading suggested that the market right now is neither too fearful nor greedy, offering a stable base for potential bullishness. As the market digests the altcoin’s previous movements, the rounded bottom pattern could be the precursor to a price hike.
A shift in market sentiment
The TD Sequential indicator on the weekly chart for WLD highlighted multiple buy signals, including A13, C13, and S13. This well-known indicator is used to predict trend reversals by identifying exhaustion points in price action.
Source: Ali Charts
The appearance of these buy signals hinted that WLD’s downward trend may be nearing its end and that a bullish reversal may be imminent.
An alignment of these TD Sequential signals with the rounded bottom pattern supported the idea of a price surge. If market conditions continue to align, these buy signals could lead to a notable upswing in WLD’s price.
A sign of things to come
WLD’s recent volatility flashed a reading of 121.90% at press time. Such high volatility is characteristic of the crypto market, often accompanying significant price swings.
Source: IntoTheBlock
The prevailing volatility could indicate that market participants are actively preparing for a price change. Historically, periods of high volatility have preceded trend shifts, and this pattern means that WLD may be on the verge of a rebound.
If the market volatility remains high, it could signal that WLD is primed for a potential breakout, following a similar trajectory as past rebounds.
Growing interest fuels potential upswing
Finally, an analysis into the Open interest of WLD Futures on Binance revealed a hike over recent weeks. Here, Open Interest represents the total number of outstanding futures contracts and can serve as an indicator of growing market interest.
Source: CoinGlass
The aforementioned findings mean that more traders are now positioning themselves in anticipation of price movements.
This is consistent with the buy signals from the TD Sequential indicator and the positive price pattern seen on the charts too. The hike in Futures Open Interest supported the possibility of a bullish move as well. Especially as it hinted that investors are reacting to the potential for an upside for Worldcoin’s [WLD] price.
