Worldcoin rebounds 7%, as analysts diverge on where the trend is headed

Behind Worldcoin's 7% rebound: Analysts are divided on trend turning points

Worldcoin (WLD) showed a moderate recovery in July after a long sell-off. Previously, the price of the token has fallen since the all-time high of approximately US$11.97 set in 2024, with a cumulative decline of more than 96%. The recent rally has driven price increases between 3% and 7%, reflecting improved sentiment across the cryptocurrency market. However, analysts remained cautious when declaring it a sustainable trend reversal.

Technical signals spark trend reversal battle

The latest price movements have caused divisions among market observers. Some saw early signs of stabilization, while others warned that the rally could be just a brief pause in a larger downward trend. Technical analyst@that1618guy pointed out that Worldcoin's weekly relative strength index (RSI) showed significant bearish divergences after it rebounded from approximately $0.23 to $0.72.

"WLD shows a huge bearish divergence from RSI on the weekly chart, which further warns us that the strength of the current rally is questionable." The analyst also observed that weekly volatility appeared to be weakening as the WLD retests the short-term index moving average. He believes this is not a buying opportunity, but rather a sign that momentum has exhausted; the lack of a clear market narrative makes the market more likely to consolidate before any meaningful surge occurs.

Long-term view: Resistance levels need to be overcome one by one

Other analysts offered more constructive views. Analyst@0xLogicalx believes that Worldcoin is still in the early stages of establishing a long-term recovery cycle. After reviewing the historical price cycle of the cryptocurrency market, the analyst said that major rallies tend to advance in stages, and assets will regain key resistance levels one by one.

According to weekly charts, WLD faces important resistance points around $2.20,$4.15 and $12. Considering that the token is currently trading at around US$0.40 to US$0.42, these levels are still out of reach and will require multiple successful breakthroughs in the coming months to become technically meaningful.

Overview of price levels

US$0.23 (previous major low)
US$0.40 -0.42 (current trading range)
US$2.20 (first major resistance)
US$4.15 (second resistance)
US$12 (Long-term resistance/high point)

Clearing clusters highlight key resistance areas

Derivatives positions have also attracted attention. Analyst @EsamTrading pointed out that Coinglass's 30-day clearing heat chart showed a large number of highly leveraged transactions in the US$0.48 to US$0.52 range, especially on the Bybit exchange.

This cluster suggests that if the price clearly breaks US$0.522 with increased volume, it may open the channel for a move towards US$0.55 to US$0.58; while if it is blocked near US$0.50 to US$0.51, it may trigger a new round of selling, pushing prices back to lower support levels. The price trend over the past month finally tilted towards a downward scenario, with WLD prices falling back into the US$0.40 to US$0.42 range before showing new signs of upward attack.

Indicators convey complex technical signals

Worldcoin's overall technical signals remain unclear. TradingView's technical summary currently shows that the token has neutral readings over many time frames, however the overall bias on weekly and monthly charts still tends to "sell to neutral."

The 14-day RSI has stabilized between 40 and 45, close to neutral but biased towards oversold areas. This suggests that the bearish momentum has subsided, but buyers are not yet firmly in control of the situation. The MACD indicator is currently near the zero line, implying a lack of clear bullish or bearish direction.

Short-term moving averages such as the 50-day moving average hover in the US$0.40 to US$0.50 range, close to the current trading price of the WLD. Although the "golden cross" signal is still present (i.e., the 50-day moving average is higher than the 200-day moving average), analysts warn that this technical signal is being offset by a broader downward trend that has continued since the beginning of 2024.

Key price levels in market consolidation

From the perspective of price structure, the US$0.40 level has become the main support area for traders. Direct support is between $0.38 and $0.40 (recent consolidation activity has strengthened the area), while $0.35 and the previous major low of $0.23 provide further support.

The main resistance area remains between $0.42 and $0.45 (supported by the 30-day moving average). A decisive breakthrough in this area would improve short-term bullish momentum and could redirect attention back to the main resistance level around $0.70.

Recovering the resistance zone between US$0.42 and US$0.45 while maintaining US$0.40 support would signal a stronger recovery, but analysts are currently viewing the rise as a preliminary attempt rather than a confirmed bullish reversal.