- Analyst Altcoin Sherpa says Worldcoin (WLD) could drop further.
- He advises traders to wait for consolidation before entering.
- The chart shows recent gains erased by a steep correction.
Crypto analyst Altcoin Sherpa believes Worldcoin (WLD) is not yet ready for a rebound. In a post on X, he wanted the asset could revisit lower levels. Therefore, he recommends waiting for consolidation before making a buy decision.
WLD Experiences Volatility After Sharp Rally
In his market update, Sherpa posted a chart of WLD’s price movement, which showed a steep rise followed by a noticeable decline. The chart includes Fibonacci retracement levels applied to the recent upward move. According to him, while the 0.50 Fibonacci level had previously been on his radar, he ultimately chose not to buy at that point.
As of this press time, Worldcoin is trading at $1.48, after a 5.3% decline in the past day. Yet, the coin has seen an impressive 72.4% surge in the past month.
Related: WorldCoin ($WLD) Price Prediction for May 24: Bulls Eye $1.73 as Rally Cools Below Key Resistance
Reflecting on the broader price action, Sherpa noted that applying Fibonacci retracement to the entire move isn’t ideal due to the coin’s volatility. In his view, the chart suggests that Worldcoin could fall to even lower levels before finding support.
Sherpa emphasized that traders should wait for consolidation, sideways trading action that indicates market equilibrium, before taking new positions. “It could take a bit, but just watch and wait,” he said.
Technical Outlook Suggests Patience
The current chart shows the price facing resistance after a vertical rise, followed by a retracement near key Fibonacci levels like 0.5 and 0.618, often acting as short-term supports.
The price movement is also part of a broader correction seen in several altcoins after positive rallies earlier this week, as Bitcoin hit a new all-time high above $111k. Bitcoin is now trading at $109,273, following a 1.5% drop in the past day. Ethereum and XRP follow similar patterns, seeing a 3.5% drop in the same period.
Related: Worldcoin (WLD) Gains 25% in a Week as Visa, Tinder Japan Back Biometric Push
Meanwhile, many traders use Fibonacci retracement tools to identify potential support zones, but Sherpa cautioned against relying too heavily on this method for WLD, given the erratic nature of its recent price swings.
Contrastingly, Worldcoin is exhibiting bullish momentum, with TradingView’s technical summary signaling a “Buy” recommendation. Of the 25 key indicators analyzed, 14 suggest buying, 9 remain neutral, and only 2 advise selling.
The Moving Averages display a particularly strong bullish bias, with 12 out of 14 pointing to a “Buy,” while the Simple Moving Average (200) is the only one flashing a “Sell.” Meanwhile, oscillators are more cautious, 8 of 11 are neutral, and only 2 indicate buying conditions.
The overall technical sentiment leans positive as WLD trades at $1.4889, marking a 9.88% daily gain.
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