Technical Analysis of the 4H Chart for World Coin (WLD)
1. Price Action Analysis (Candles and Trend)
Market Structure and Price Action
1. Rejection at Key Resistance (1.3772) and Strong Drop:
The price attempted to break resistance at 1.3772 but was rejected with a strong pullback.
The last drop brought the price below 1.2098, touching 1.2003, indicating weakness and selling pressure.
2. Critical Support Zone at 1.1479:
The price is testing the 1.2003 zone again, a key level that previously acted as support.
If it breaks 1.1479, the drop may extend to 1.1364 and possibly lower.
3. Volume and Movement Confirmation:
A significant increase in red volume is observed, confirming aggressive selling.
This suggests that large players are exiting the market or accumulating for a greater drop.
2. Analysis of Technical Indicators
Bollinger Bands (BB):
Bollinger Bands expansion: indicates high volatility.
The price broke the middle band (MB: 1.2496) and is heading toward the lower band (DN: 1.1817), confirming a bearish trend.
MACD (Moving Average Convergence Divergence):
Bearish crossover: the MACD line is below the signal line.
Negative and falling histogram, confirming selling pressure.
Stochastic RSI (Momentum Strength):
Extreme oversold: Stoch RSI at 2.70 and MASTOCH at 7.86.
This indicates that the price is oversold, but there is still no confirmation of a bounce.
Moving Averages (MA):
MA(5) below MA(10), confirming the bearish trend.
MA(50) and MA(100) sloping downwards, indicating continued bearishness.
3. Impact of Inflation Data in the USA and its Relationship with WLD
Inflation data of 3.0% in the USA has strengthened the dollar, creating bearish pressure on cryptocurrencies like WLD.
The FED will maintain high interest rates, reducing capital flow into risk assets.
This creates additional selling pressure on WLD, as traders reduce exposure to cryptocurrencies in favor of the dollar.
4. Forecast
Bearish Scenario (More Likely)
If the price breaks 1.2003, it could fall to 1.1479 and then to 1.1364.
A loss of 1.1364 would open the door to a deeper drop.
Bullish Scenario (Less Likely and Requires Confirmation)
To change the trend, the price must recover 1.2496 and break 1.2831.
Without a bullish consolidation, the bearish pressure will continue.
5. Successful Investment Strategy in Spot and Futures
Spot Trading Strategy
Buy Entry (If there is support confirmation):
Buy at 1.1479 - 1.1364 if a bullish reversal pattern (hammer or engulfing candle) forms.
Sell Targets: 1.2098 - 1.2496.
Stop Loss: 1.1200 to limit losses.
Futures Trading Strategy
Short Position - High Probability
Entry: Breakout of 1.2003 with volume.
Target: 1.1479 and then 1.1364.
Stop Loss: 1.2250 to avoid losses if the market bounces.
Recommended leverage: x3 - x5 to manage risk.
Long Position - Only if there is confirmation
Entry: If the price forms clear support at 1.1479 with buying volume.
Target: 1.2098 - 1.2496.
Stop Loss: 1.1200 to avoid losses in case of a drop.
6. Final Conclusion
WLD is in a strong bearish trend and there are still no clear reversal signals.
Inflation data and FED policy strengthen the dollar, putting downward pressure on cryptocurrencies.
The safest strategy is to trade short until support at 1.1479 is confirmed.
If there is a strong reversal, a buy can be considered, but with volume confirmation.
