Worldcoin’s （WLD） recent price surge faces potential reversal due to a bearish divergence in key technical indicators, suggesting weakened buying pressure.
Points
- Worldcoin’s price surged by nearly 30% in the past week.
- Bearish divergence identified in the Chaikin Money Flow （CMF） indicator.
- Declining Relative Strength Index （RSI） suggests reduced bullish momentum.
- Negative funding rate indicates futures traders expect a price decline.
Worldcoin （WLD）, co-founded by OpenAI CEO Sam Altman, has seen its token value spike by almost 30% over the past week. However, a closer look at technical indicators reveals potential roadblocks ahead for the cryptocurrency.
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A bearish divergence has been identified in the Chaikin Money Flow （CMF） indicator, which measures the flow of money into and out of an asset. Despite the recent price increase, the CMF remains below zero, indicating a net outflow of money from the asset. This suggests that the price rally may not be supported by strong buying interest and could potentially reverse or face a correction.
Further supporting the bearish outlook, Worldcoin’s Relative Strength Index （RSI） is in a downtrend at 48.10. The RSI measures overbought and oversold market conditions, and a value below 50 indicates that selling pressure outweighs buying momentum.
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Additionally, WLD futures traders have opened short positions, as indicated by the significantly negative funding rate across cryptocurrency exchanges. At press time, Coinglass data shows WLD’s funding rate at -0.022%, suggesting that more traders are betting on a price decline.
If these indicators hold, Worldcoin’s price could fall to $1.80. However, if the uptrend continues, short positions could face liquidations, potentially driving the token’s price toward $4.20.
解説
- Worldcoin’s recent price surge is facing potential reversal due to a bearish divergence in the CMF indicator, indicating weak buying pressure.
- The declining RSI suggests reduced bullish momentum, adding to the potential for a price correction.
- The negative funding rate in WLD futures markets further indicates that traders expect the token’s price to decline.
- Investors should monitor these technical indicators closely to gauge the likelihood of a price reversal and adjust their strategies accordingly.