Worldcoin's Price Surges 20% But Faces Resistance At $0.8

Worldcoin's price has surged by 20% over the past two weeks, but the upward momentum seems to be decelerating as it nears its local highs. At the time of reporting, Worldcoin [WLD] was challenging its local resistance level at $0.8. Technical indicators suggested that bears still held the upper hand, although this dynamic could be shifting.

Bitcoin [BTC] has seen some whale accumulation despite the overall bearish trend of recent weeks. However, its on-chain activity has mirrored levels typically seen during bear markets. Historically, such slowdowns have been followed by price drops, which could potentially hinder Worldcoin’s recovery efforts.

The market structure on the 1-day chart remained bearish. The Fibonacci levels indicated that the 23.6% extension level at $0.567 had recently been tested as support. Although the price has bounced, it has not yet breached the previous lower high at $0.8. Moving averages showed bearish momentum, with the 50-period moving average aligning with the $0.8 resistance, reinforcing its strength. However, the On-Balance Volume (OBV) revealed a different story. In early April, the OBV made higher lows while the price made lower lows, indicating a bullish divergence. This divergence was followed by a sharp price bounce for WLD from $0.57 to $0.75, suggesting that further gains could be on the horizon.

The 1-month liquidation heatmap showed that the $0.8 and $0.66 levels were key magnetic zones around its price. These levels are likely to attract Worldcoin’s price due to the presence of large liquidation levels. A test of either level could result in a reversal, making the $0.8 zone particularly challenging for the bulls to break out from.

Overall, Worldcoin traders and investors should exercise caution. An uptrend has not yet been established, and despite the OBV’s bullish divergence earlier this month, buying pressure has not been overwhelming. A breakout past $0.8 and a retest as support could be more feasible for long positions.