Worldcoin Shows Bullish Breakout, Analyst Predicts 80% Rally
December 26 2023 - 9:30AM
NEWSBTC
An analyst has explained that Worldcoin is currently showing a
breakout from a pattern that could potentially lead to a rally of
80% for WLD. Worldcoin Appears To Be Showing A Bullish Breakout
Currently In a new post on X, analyst Ali shared a chart for the
4-hour price of Worldcoin, which shows the formation of a bull flag
for the cryptocurrency. A “bull flag” is a continuation pattern in
technical analysis that, as its name suggests, looks like a flag on
a pole. Bull flags form when a rapid uptrend in the price slows
down and reverses in the opposite direction while consolidating
inside a specific channel. The preceding uptrend forms the “pole,”
while the channel shapes up the “flag.” Related Reading: Polkadot
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There are also bear flags, which form during periods of downtrend
instead. The downward trajectory naturally forms the pole in this
case and the flag corresponds to the consolidation towards a slight
upside. In the context of the current discussion, the normal bull
flag isn’t of interest, but rather a variant often called a
“pennant” is. The usual bull flag forms when the consolidation
happens between two parallel levels, while a pennant observes the
asset moving between converging lines. Here is the chart posted by
the analyst that reveals this pattern recently forming in the
4-hour price of Worldcoin: The price appears to have been breaking
out of the pattern recently | Source: @ali_charts on X In this
pattern, the top line is created by joining together lower highs,
while the bottom line connects lower lows. Typically, the asset is
probable to feel resistance at the upper level, while the lower
level could act as support. A break beyond either of these lines
can signal the continuation of the trend. From the chart, it’s
visible that the 4-hour Worldcoin price had been consolidating
inside the pennant channel just recently, but has now seen a break,
as its price is surging above the upper level. Such a bullish
breakout has generally led to strong uptrends in the past, with the
length of the resulting uptrend often being comparable to the pole
of the pattern. Related Reading: Dogecoin In Demand: Data Shows
DOGE Adoption Is Accelerating The break has only just started to
form, though, so a more sustained uptrend will have to be seen
first to see if the pattern has truly taken place. “If confirmed,
this could pave the way for WLD to enter an 80% rally, targeting
$6.30,” says Ali. WLD Price Worldcoin had broken off toward the $4
level earlier in the past day, but the asset has quickly cooled off
as it has already receded to the $3.7 mark. The below chart shows
how WLD has performed during the last few days. Had this pullback
not taken place, the bullish breakout may well have been confirmed.
The coin would have to show some fresh momentum again now if the
pattern has to complete. Looks like the asset's recent upwards push
was quite short-lived | Source: WLDUSD on TradingView Featured
image from Shutterstock.com, charts from TradingView.com
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