- Worldcoin has had a huge rally, but it could revert much of its recent gains.
- The alignment of FVGs with order blocks presented an interesting area of interest for buyers.
WorldCoin (WLD) has recorded a 270% return over the past two weeks. The $3.8 range was expected to act as a resistance line, but the WLD uptrend did not stop there when it broke through the $2.6 resistance line.
Instead, buyers could extend this resistance right up to the $8 level. This highlighted strong buying pressure and strong bullish confidence.
Fibonacci retracement levels could play an important role in the coming weeks
Source: WLD/USDT on TradingView
Based on the rally from $2.165 to $7.996, a series of Fibonacci retracement levels are indicated (light yellow). We assume the current rally has stalled at $8, but there is still a chance that the price will bounce higher despite a retracement to $6.8 in the last 24 hours.
The 61.8% and 78.6% retracement levels were at the $4.392 and $3.413 levels. The current retracement may fall into this area. The 78.6% level was particularly interesting. In late December and early January, WLD price formed a range above the $3.34 support level.
This area also demarcated a support zone (formerly a bearish order block) where buyers are likely to want to participate.
This was also consistent with a fair value gap (FVG, white box) in the region of $3.8. So the $3.3-$3.8 area is the area of interest for buyers.
Short-term market data showed sentiment turning bearish.
Source: Coin Analysis
Data from Coinalyze shows that open interest has been stagnant over the past 24 hours. The price also dropped from $8 to $6,823 at press time. A slight decline in OI along with price indicates a shift in sentiment in favor of sellers.
Realistic or not, the market cap of WLD in BTC terms is:
Spot CVD has also started to trend downward over the past 24 hours. This highlighted the volume of sales in the spot market.
This is likely due to profit-taking activity and could begin a short-term downtrend that could lead to a slide below the $5 and $4 levels towards the areas of concern highlighted earlier.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.