Worldcoin gives a buy signal, looks to trim losses

  • The 3-day WLD chart of WLD showed that sellers were exhausted, and the price was ready to bounce.
  • Historical analysis of another metric points to a rise above $3.

Worldcoin [WLD]The native token of the open-source digital identification platform has shown signs of its readiness to trade at higher levels. Crypto analyst Ali Martinez mentioned this in a post on X (formerly Twitter).

According to Martinez, the Tom DeMark (TD) Sequential on the 3-day chart of WLD gave a buy signal. The TD Sequential is a technical analysis tool that identifies the exact period of trend exhaustion.

It does this by looking at a two-step setup. One represents a 9-candlestick phase, where it can identify a sell signal after prices have moved higher. It sets up the second one using a 13-candlestick countdown.

In this case, it gives a buy signal after the sellers are exhausted, and this is what happened in the case of Worldcoin.

Potential price increase of Worldcoin

Source: X

At press time, WLD was priced at $2.52. This represents a 49.08% increase over the last 30 days.

Therefore, the signal shown on the technical setup suggests that the token could be on the verge of saying goodbye to some of these losses. If this happens, the Worldcoin price could reach $30.5 as its first target.

Another metric that can help validate the price increase is the cryptocurrency’s correlation with Avalanche [AVAX]Recently, AMBCrypto explained why the price of AVAX might continue to rise.

If so, WLD can do the same. The evidence of this is shown in the correlation matrix, which was 0.96. This correlation matrix ranges from -1 to +1.

When it is at -1 or close to it, it means that the two cryptocurrencies rarely move in the same direction.

However, when the metrics are close to a +1 reading, it means there is strong directional movement. Hence, seeing a price increase in AVAX and WLD is something that could happen in the short term.

In addition, we evaluated the social dominance of Worldcoin. According to Santiment, the social dominance of Worldcoin had increased to 0.198%.

Social dominance shows the share of discussions related to a particular asset or phrase in the media. When it increases, it means that the discussion about the project has improved.

However, a decrease in the metric means that the conversation about an asset is decreasing. Historically, an increase in social dominance helps create buzz that leads to an increase in demand.

Worldcoin price likely to increase

Source: Santiment

On several previous occasions, this has led to a rise in the price of WLD. The same could be the case this time as well. Therefore, the prediction of $3 or above could prove to be correct. But market participants need to be cautious.

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If the buzz around Worldcoin grows too intense, social dominance could reach very high levels. This could mark a local top for the price, indicating a potential correction.

However, if that doesn’t happen, WLD could rise significantly in the coming weeks.

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