Worldcoin Rebounds Strongly, Analyst Ali Warns of Critical Resistance Ahead

• Worldcoin (WLD) hits $3.59, meeting its head-and-shoulders target; analyst Ali advises booking profits as resistance nears.
• A breakout above key Fibonacci levels signals bullish momentum for WLD, but $3.92 resistance could test the rally’s strength.
• Ali highlights the trendline breakout as a turning point, urging traders to monitor reversals and secure gains in volatile markets.

Worldcoin has reached the target of its head-and-shoulders pattern, signaling a potential shift in market momentum. The cryptocurrency’s recent price action indicates that it might trend higher, but now is a good moment to book profits, according to analyst Ali. The price has surged to $3.59, indicating a 22.05% increase in the most recent session and significant optimistic enthusiasm.

Price Rebounds After Prolonged Downtrend

The WLD/USDT pair on Binance initially suffered a downtrend , plunging 60.60% from a high near $12 to a low of $1.28. This sustained selling pressure marked weeks of bearish activity. However, the asset stabilized at nearly $1.28, forming a base for recovery.

A breakout above the descending trendline signaled the end of the downtrend, coinciding with a rise above the 0.236 Fibonacci retracement level at $2.17. This marked the start of a bullish phase, which gained momentum as the price climbed past $3.01, the 0.382 Fibonacci retracement level.

Source: Ali

Approaching Critical Resistance

Currently, WLD is nearing the 0.5 Fibonacci retracement level at $3.92, a critical resistance zone. This recovery phase reflects growing buyer interest and improving market conditions. Each Fibonacci level has served as resistance during the upward trajectory, emphasizing the importance of these levels in technical analysis.

Moreover, the steep price increases highlight significant bullish sentiment. Ali notes that the breakout above the trendline was a turning point, suggesting market participants are regaining confidence after the prolonged decline.

Future Outlook and Profit-Taking Strategy

As WLD approaches $3.92, further resistance could emerge, testing the strength of the ongoing bullish trend. Ali advises traders to consider booking profits as the asset has met the target of the head-and-shoulders pattern.

Consequently, traders should watch key levels closely for potential reversals or further momentum. Besides, the absence of volume data in the analysis suggests relying on price action to gauge market dynamics.