The Worldcoin (WLD) price has decreased in a corrective pattern since its launch on July 25. The decrease culminated with a low of $1.02 on September 5.
However, the price began a bounce on September 5 and has increased by nearly 25% since then, showing signs of a potential future breakout.
Worldcoin Price Bounces at $1
The WLD price has been on a downtrend since its listing on July 24. The downward movement has been contained inside a descending parallel channel. These channels usually contain corrective movements, meaning that an eventual breakout from the channel is the most likely future price scenario.
On September 5, the price reached a new all-time low of $1.02 but bounced almost immediately afterward. It is possible that the bounce was caused due to news that Worldcoin had signed up 10,000 Argentinians in 24 hours. The price now trades in the channel’s upper portion, further increasing the possibility of a breakout.
The six-hour RSI supports the possibility of a breakout. Traders employ the RSI as a momentum indicator to assess if a market is overbought or oversold, helping them decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator is above 50 and increasing, both considered signs of a bullish trend.
In case of a breakout, the WLD price can increase by 65% and reach the $2.10 horizontal resistance area.
However, if the rally loses steam, WLD could fall to the long-term channel’s support line, currently at $0.75. This would amount to a drop of 40% and would constitute a new all-time low price.
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