Worldcoin Breaks $2.5 Resistance: Is the Path to $4.5 Clear?

Worldcoin (WLD) recently broke through the $2.5 resistance level, turning it into strong support. The next major target is $4.5. Market trends show bullish signs, but a bearish divergence could cause a dip. Investors are watching closely to see if this rally has staying power.

Momentum Builds with Key Support Levels

Worldcoin flipped the $2.5 resistance to support and secured $3.26 as another key level. Despite bullish movement, a bearish divergence in the Money Flow Index (MFI) suggests a potential pullback could happen soon.

From March through September, WLD was in a downtrend. Since hitting September lows, WLD has surged 198%. Most of this growth came after breaking above $2.5. This strong momentum signals growing investor confidence.

The 20 and 50-day moving averages have formed a bullish crossover. These averages may act as support if the market retraces. The MFI sits at 81, indicating strength but also a warning of possible weakening momentum.

Next Stop at $4.5?

The $4.5 level served as strong support from April to June. Now, traders are watching to see if WLD can rally past this threshold. However, consolidations beneath this level could delay progress.

The liquidation map adds further insight. 

Many short positions are clustered around $4 and $4.15. This suggests WLD may push toward $4.13 to trigger short squeezes. If successful, this move could fuel further upward pressure. While sentiment remains positive, caution is wise. 

Breaking beyond $4 might signal market overextension.Traders should pay attention to price movements and market strength. Worldcoin’s rally toward $4.5 depends on investor support, technical signals, and market momentum.