Worldcoin [WLD] had a strong bullish showing on Monday, the 23rd of March. Buyers defended the $0.3075 support from the 6th of February, and forced an 8.46% bounce from the day’s low at $0.3039.
Since reaching $0.3296, WLD has receded and was trading at $0.3175 at the time of writing. Will the altcoin succeed in gathering steam for its next rally, or should traders expect more losses?
Worldcoin drops below the $0.345 local support
The long-term trend of Worldcoin has been unambiguously bearish. Measured from the day’s open during the 10/10 crash, WLD has shed 73.57% in value in under six months.
By itself, this was not an extraordinary number. Many altcoins have similar and even more severe losses. However, select altcoins have also been able to display short-term bullish strength in March.
The Bitcoin [BTC] push back above the $70k market gave some altcoins the impetus to bounce higher and shift their short-term trends bullishly. Worldcoin was not one of them.
Instead, WLD made new lows on the daily chart. The $0.345 local support from February was breached, and the price plunge was temporarily halted at the extremes of the early February crash.
Traders’ call to action- Sell the bounce
The 4-hour chart showed a bearish swing structure for Worldcoin. This bearish shift occurred on the 19th of March, when WLD fell below the swing low at $0.346.
This impulse move downward was used to plot a set of Fibonacci retracement levels (white). At the time of writing, the 23.6% retracement level at $0.326 was acting as resistance.
If it is flipped to resistance, traders can expect WLD to rally to the golden pocket at $0.354-$0.366.
The RSI was just below neutral 50, and the CMF had succeeded in climbing above +0.05 to indicate strong capital inflows. If demand and momentum are sustained, Worldcoin could bounce higher.
However, traders should remember the longer-term trend of WLD and use the price bounce toward $0.366 to sell the altcoin.
If a rally can break out past the local high at $0.406, the swing structure would be flipped bullishly and invalidate the current bearish bias.
Final Summary
- The long-term trend of Worldcoin, like Bitcoin and many altcoins, was bearish, but WLD has exhibited relative weakness in recent days.
- This weakness saw a bearish structural shift on the 4-hour chart, and traders can wait to sell the bounce.
