Worldcoin (WLD) Price Breaks Out From Corrective Pattern
The price of Worldcoin (WLD) has seen an increase after reaching an all-time low on September 12. This surge in price indicates a breakout from a descending parallel channel that lasted for 53 days, suggesting that the correction phase is complete.
Descending Parallel Channel Correction
From July 24 onwards, the price of WLD has been in a downward trend within a descending parallel channel. The upper resistance and lower support lines of this channel have been repeatedly confirmed. These channels are typically considered as corrective patterns, often leading to breakdowns.
On September 7, the price of Worldcoin was rejected by the channel’s resistance line, marking the beginning of a downward trend that eventually led to the all-time low price of $1.02 on September 12.
Bullish Breakout and Momentum Indicator
However, since then, the Worldcoin price has increased and broken out from the channel on September 15. This breakout suggests that the correction phase is over and a new upward movement has begun. Although the price has fallen since then, it still remains above its breakout level.
The six-hour Relative Strength Index (RSI) supports this upward momentum. Traders use the RSI as a momentum indicator to assess market conditions and make decisions about buying or selling assets. With the RSI reading above 50 and increasing, it indicates a bullish prediction for Worldcoin’s price.
Potential Price Targets
If the upward movement continues, there is potential for the price to increase by another 50% and reach the $2.10 resistance area. However, if the rally loses momentum, a 25% drop to the channel’s resistance line at $1.08 can be expected.
Hot Take: Worldcoin (WLD) Price Shows Signs of Recovery
The recent breakout from the corrective pattern and the bullish momentum indicated by the RSI suggest that Worldcoin’s price is on a path to recovery. Despite a slight decline, the price remains above its breakout level, indicating a positive outlook. Traders should closely monitor the upward movement and potential resistance areas to make informed investment decisions.
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