One analyst explained that Worldcoin is currently breaking out of a pattern that could potentially lead to an 80% rise in WLD.
Worldcoin appears to be going strong at the moment.
new post At X, analyst Ali shared a 4-hour price chart of Worldcoin that shows the formation of a bull flag for the cryptocurrency. A “bull flag”, as the name suggests, is a continuous pattern in technical analysis that looks like a flag on a pole.
A bull flag forms when a sharp upward trend in price slows and reverses in the opposite direction while consolidating within a specific channel. Previous uptrends form “poles” and channels form “flags”.
Instead, there are also bearish flags that form during periods of a downtrend. In this case, the downward trajectory naturally forms a pole, and the flag corresponds to a sideways move toward a slight uptick.
In the context of the present discussion, the usual bull flag is not of interest, but rather a variant called a “pennant”. While a typical bullish flag forms when consolidation occurs between two parallel levels, a pennant observes an asset moving between convergence lines.
Below is a chart published by an analyst showing this pattern forming in the recent 4-hour price of Worldcoin.
The price appears to have been breaking out of the pattern recently | Source: @ali_charts on X
In this pattern, the upper line is created by connecting lower highs and the lower line is created by connecting lower lows. Typically, the asset is likely to feel resistance at higher levels, while lower levels may act as support.
A breakout of one of these lines could signal a continuation of the trend. Looking at the chart, we can see that the 4-hour Worldcoin price has recently been consolidating within the pennant channel, but has now hit the break with the price surging above the upper level.
These bullish breakouts have typically led to strong uptrends in the past, and the length of the resulting uptrend has often been similar to the extremes of the pattern.
However, since a breakout is just starting to form, we should first look at a more sustained upward trend to see if the pattern has actually occurred. “If confirmed, this would pave the way for WLD to begin an 80% rally targeting $6.30,” says Ali.
WLD price
Worldcoin broke away towards the $4 level early the previous day, but the asset cooled quickly as it had already retreated to the $3.7 level. The chart below shows WLD’s performance over the past few days.
If this downturn had not occurred, a bullish breakout could have been confirmed. The coin will now need to show new momentum again for the pattern to be completed.
Looks like the asset's recent upwards push was quite short-lived | Source: WLDUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com
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Source: NewsBTC.com