Worldcoin Surges 37% in 1 Day as Foundation Raises $135 Million

Worldcoin [WLD] has recently experienced a significant surge in its price, with a major 1-day candle rallying by 37% and the daily trading volume increasing by nearly 140% compared to the previous day. This explosive move was not anticipated, as the trend of WLD had been bullish over the past month. The surge was further fueled by the Worldcoin Foundation raising $135 million for network expansion by selling its token to early investors, which saw WLD’s price climb rapidly.

The 1-day chart revealed that an uptrend had already been in progress before the most recent 1-day candle burst out beyond $1.4. After the breach of the $1 psychological resistance towards the end of April, the bullish intent was made clear. Worldcoin dipped below $1 in early May, likely in a move to hunt liquidity, before reversing swiftly. A week ago, WLD’s price dipped to $1.07, once again retesting the demand zone around $1.

Throughout the past two months, the On-Balance Volume (OBV) has been trending higher, making higher highs and higher lows. At the time of reporting, it was pushing higher again. The Relative Strength Index (RSI) was at 72, the first foray into overbought territory in nearly two weeks. However, neither indicator highlighted a bearish divergence on this timeframe, and the rally could easily push towards $2 and beyond in the coming weeks.

The market does not move in a straight line upwards, and the 4-hour chart appeared to be the exception to the rule. On the back of heavy demand over the past few days, Worldcoin rallied by 41% in under 36 hours. While it was impressive, traders looking to go long should not FOMO now. They can wait for a pullback to $1.4, the long-term support/resistance level. A deeper dip to the previous local highs at $1.32 may also be possible. Patience would be key for traders looking to re-enter a long trade. Meanwhile, traders already in long positions could book profits, especially if trading with leverage. Finally, at the time of reporting, the H4 RSI was at 87 – a high that has not been matched in recent weeks.

Worldcoin's price might break the resistance at $1.35 if the current trend holds. Once it breaches the 0.618 golden ratio, the altcoin's next target could be $2. This potential breakout is closely watched by traders who are looking for opportunities to go long on the cryptocurrency. The recent price action has shown a clear downtrend, with no confirmed reversal pattern on the weekly timeframe. However, there are indications of a potential bounce to initial targets at $1.37 and $1.44. If momentum strengthens, upward moves toward the $1.70 mark are anticipated.

Worldcoin's latest increase is surprising as it caught many traders unaware. It is worth noting that it had a notable increase during the previous intraday session, surging from $1.11 to $1.28. Although it retraced, it registered gains exceeding 7%. The project saw fresh investment that thrilled users and traders. It recently raised $135 million in a private token sale to lead venture firms. Worldcoin’s CEO claimed they will use the fund to foster infrastructure and user growth. Investors viewed the move as opening the cryptocurrency to a broader audience and increasing its usage. They are buying into what they presume will be a massive rally in the coming days.

Several traders have since taken to social media to express their happiness over the milestone in price and the CEO’s latest move. They praise the CEO for being a visionary and steering the project in the right direction. Others stated that the cryptocurrency is gearing up for global dominance as users in Asia grow. Nonetheless, there are predictions as to the next price action. Some analysts said that WLD is approaching the upper resistance of an ascending triangle pattern and is due for a breakout. He added that the asset may hit $2.50 or $3.18. However, indicators like the relative strength index and Bollinger bands are blaring warnings. The RSI is above 70, indicating that the token is overbought and due for corrections. The cryptocurrency broke out of the BB a few hours ago. Worldcoin risks a slip to $1.30.