Is a Worldcoin Price Rebound Imminent? Chart Pattern Indicates Potential Rally to $3

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is a worldcoin price rebound imminent? chart pattern indicates potential rally to $3 4

Recent price action shows Worldcoin (WLD) consolidating within a broadening wedge pattern, suggesting a potential reversal and rally to $3 may be forthcoming, according to a recent analysis.

After surging to $7.50 on its July 24th launch, WLD has pulled back approximately 68% to trade around $2.35 at press time. However, the current sideways trend appears to be setting the stage for the next leg up.

worldcoin price prediction 2023
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Broadening Wedge Pattern Fueling Upside Potential

Worldcoin’s hourly chart illustrates the broadening wedge pattern that has emerged after the initial rally and correction. Two key rising trendlines are currently providing support and keeping price action contained within the expanding channel.

As noted by analyst Brian Bollinger, this consolidation period is crucial for establishing a base from which a sustained uptrend can develop. By absorbing selling pressure and stabilizing at higher levels, the probability of a breakout above $2.55 resistance increases.

“If the chart pattern remains intact, and offers dynamic support to coin buyers, the WLD price could challenge the $2.55 for a bullish breakout. Reclaiming this swing high would be an early sign for uptrend continuation and may drive a rally to the next significant resistance around $2.92-$3.”

The upward sloping 50, 100 and 200-day exponential moving averages (EMAs) add to the bullish case for WLD by presenting key levels of underlying support on pullbacks. The widening gap between the directional movement index’s (DMI) DI+ and DI- also signals building upside momentum.

Premature Breakdown Could Spark Decline to $1.85

The analysis does caution that a premature breakdown from the rising channel could jeopardize the rally. If WLD decisively breaches support, particularly the longer-term uptrend line, the recovery could unravel.

This may open the door to a retest of recent swing lows around $1.85. However, the bullish momentum indicators suggest this remains a lower probability outcome at this stage.

Key Takeaways

  • Worldcoin appears to be carving out a bottoming broadening wedge pattern after its launch surge and correction.
  • WLD is consolidating with two key rising trendlines maintaining the current sideways channel.
  • A break above $2.55 is needed to confirm the next leg up, with targets around $3.
  • While a breakdown is possible, EMA and DMI support point to building bullish momentum.
  • Premature support failure could spark a decline to $1.85 before further upside.

With Worldcoin still in the early stages after its mainnet rollout, price action remains volatile and direction unclear. However, the developing technical setup suggests upside potential is building.

A clean break from the wedge pattern could be the catalyst for WLD to mount a recovery toward its post-launch highs. This will be a key space to watch over the coming days and weeks.

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