On 18 May, Worldcoin [$WLD] tested the bottom of a local range formation at $0.233. It has not looked back since. In fact, the bulls have been on a mission, driving a 70% rally in two weeks.
The spot trading volume trends have been healthy too. In the past two weeks, the volume has been consistently well above average. The volume reflected strong market participant belief in the price move.
And yet, in the short-term, Bitcoin’s [BTC] weakness has forced losses. In the last 24 hours, for instance, the daily trading volume has fallen by 15% as Worldcoin‘s price retraced 11%.
Can the bulls overcome this selling threat, or has the rally already reached its zenith?
Worldcoin’s rally can yield opportunities for patient investors
$WLD’s latest moves have been part of a bullish wave in the AI sector in recent weeks. Even during the recent downturn, crypto AI tokens fell by only 1.5% over the past week, compared to Bitcoin’s 11.9%.
Source:
$WLD/
$USDT on TradingView
$WLD’s breach of the $0.329 swing high represented a bullish structural shift in May. Despite intraday volatility, the move has kept going though and the trading volume has been well above the 20-period moving average.
In fact, the $0.44-area has been a key resistance zone since February. The recent retest of this supply zone did not see a convincing breakout. Instead, $WLD surged to $0.48 before retreating swiftly back below $0.40.
Source: CoinGlass
The cluster of short liquidations around $0.44 was taken out too and at press time, a subsequent retracement was underway.
Traders’ call to action – Wait to buy
Given that the 3-day structure has shifted bullishly, it makes sense that $WLD swing traders can look for buying opportunities.
Source:
$WLD/
$USDT on TradingView
At the moment, the altcoin is undergoing a retracement phase. Its 4-hour chart highlighted a bullish structure, aligning with the higher timeframe structure. A retracement into the golden pocket between $0.319-$0.354 would offer an ideal buying opportunity.
A drop below $0.275 would break the H4 structure and could be used as invalidation for the bullish idea. On the other hand, a retracement towards $0.319 and a subsequent rally can be expected to reach $0.532.
Final Summary
- Bitcoin’s weakness has hurt Worldcoin’s price in the last 24 hours, but the crypto AI sector narrative remains relatively strong.
- Combined with the higher timeframe price structure, $WLD bulls have reason to remain bullish.
