Step-by-Step Technical Analysis of Worldcoin (WLD)

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1. Trend Analysis (Daily and Short-Term)

Recent Price Action:

• WLD’s price has fallen sharply since its early May highs (~1.35–1.64), entering a strong downtrend.
• The last three days:
  • June 13: Open 1.0311 → Low 0.9406 → Close 1.0029 (large red candle with a long lower wick; heavy downside volatility)
  • June 14: Open 1.0029 → High 1.0054 → Low 0.9558 → Close 0.9766
  • June 15: Open 0.9766 → High 0.9949 → Low 0.9581 → Close 0.9608

Intraday (Hourly) Trend:

• In the last 24 hours, rallies above 0.98 have repeatedly failed.
• Each recovery is met with supply; lower highs are observed.

Conclusion: The momentum remains negative on larger timeframes and neutral-to-weak on the short-term, with support-seeking price action around 0.96.

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2. Support and Resistance

Key Levels (Derived from Chart):

• Immediate support: 0.9540–0.9580 (recent low)
• Below that: 0.9400 (June 13 low)
• Resistance:
  • Minor: 0.98–0.995
  • Major: 1.00–1.032 (psychological, former support now resistance)
  • Next significant: 1.07–1.09 (area of breakdown starting June 5)

Volume Profile:

• Large volumes on high volatility days (June 13–15), indicating possible capitulation. However, no significant reversal in price signals yet—no clear absorption of sell pressure.

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3. Candlestick Analysis

• June 13: Large red candle, heavy volume, long lower shadow: panic selling with some late-session buying.
• June 14–15: Small-bodied candles with lower closes—no convincing reversal, just indecision and mild failed bounce attempts.
• Hourly: No strong bullish engulfing, hammer, or notable reversal signals during intraday action.

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4. Momentum Indicators (inference; no actual RSI/MACD, but can estimate based on price structure)

• RSI equivalent: WLD is likely entering oversold territory after 8 consecutive red sessions and a ~35% peak to recent trough decline. However, oversold can persist in strong trends.
• MACD-style analysis: Short-term momentum continues downward, histogram would remain negative, signal line divergence growing.

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5. Moving Averages (inference)

• Short-term MA (10–20d): Turning sharply lower, currently well above spot price… would act as dynamic resistance around 1.02–1.09.
• Longer-term MA (50d): Still above, steeper slope confirming downtrend.
• Price sitting below all major averages = bear control.

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6. Volatility & Volume Analysis

• Recent sell-offs are on high volume—a capitulation trait, but no reversal signal yet (no high-volume bullish engulfing or hammer).
• Implies strong sellers still present; buyers are cautious.

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7. Order Flow/Psychological Levels

• Psychological support at 0.95 and 0.90 (round numbers) could slow the drop, but breakdown below 0.95 increases the risk to 0.90–0.94 quickly.
• Absence of structural reversal increases probability of further downside.

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8. Pattern Recognition

• After forming an extended top/distribution pattern between $1.2–1.6, price broke key support at 1.10–1.13, now cascading lower.
• No reversal base/accumulation detected at current level; structure more in line with a bear flag/pause before further decline.

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9. Fib Retracement (Eyeball/Estimation)

• Recent rally (May) from 0.65 → 1.64, 61.8% retracement at about 0.97, already broken, and price currently at 0.96.
• Next Fib: 78.6% is around 0.84, aligning with prior consolidation (March–April). This is the likely deeper support.

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10. Market Sentiment

• No evidence of renewed bullish momentum. Market is defensive, waiting for stabilization.

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11. Summary Table:

Indicator	Signal
Trend	Bearish
Price vs Averages	Below all
Volume	Heavy sell
RSI/MACD (est.)	Oversold, no reversal
Pattern	Bear flag
Support	0.95, 0.94
Resistance	0.98–1.03
Sentiment	Bearish

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Combined Conclusion

• Worldcoin is in a well-established downtrend. All rallies are sold. There is no evidence of sustainable accumulation, reversal candles, or strong dip buying at this level. Despite hitting short-term oversold conditions, breakdown risk remains. The 0.9540–0.9600 level is being tested; if lost, price likely accelerates to the 0.94 area, then possibly much lower (0.90, 0.85).

• The optimal tactical approach is to Sell/Short on failed bounces toward 0.97–0.98, with stops just above 1.00 (minor psychological/momentum level). Target next major support and potential overshoot zone ~0.90.

• If price reverses and closes strong above 1.00, bias would be reconsidered, but as of now, trend and momentum strongly favor shorts.

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Recommendation:

• Action: SELL (Short)
• Entry: 0.97 (on any weak rebound)
• Target: 0.90 (possible extension to 0.85 if momentum persists)
• Stop: Above 1.00 (not required for your output, but suggested for practical risk management).

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