After months Of correction following November 2024’s bullish surge, select altcoins are demonstrating renewed strength. Among them, Worldcoin ($WLD )and Gala ($GALA ) have emerged as standout performers, rebounding from steep declines of over 40% in recent weeks. Both tokens now hover near pivotal resistance levels within falling wedge patterns—a technical setup often signaling potential bullish reversals. A decisive breakout could propel prices higher, reigniting optimism for traders.
Worldcoin (WLD): Eyeing a 68% Rally
Since peaking at $4.19 on December 6, 2024, WLD has traced a descending trajectory within a falling wedge pattern. The token found a foothold at $1.61 in late January, aligning with the wedge’s lower boundary. Currently trading at $1.17, WLD is testing the upper trendline resistance of its pattern.
A confirmed breakout above this level could fuel a rally toward the 50-day moving average (MA) at $1.32. Sustained bullish momentum might then target $1.87—a 68% leap from current prices. However, failure to breach resistance risks a retracement to the wedge’s lower support near $1.60.
[Worldcoin (WLD) Daily Chart] Worldcoin’s falling wedge hints at a bullish reversal if resistance breaks.
Gala (Gala): Bullish Divergence Sparks Hope
GALA mirrors WLD’s technical narrative. After a December 4 high of $0.066, the token plummeted to $0.017, stabilizing at the wedge’s lower trendline. Now trading at $0.020, GALA eyes a breakout above its upper resistance.
A successful breach could propel it toward the 200-day MA at $0.025, with further upside potential to $0.034—a 72% surge. The daily MACD indicator reveals a bullish divergence, suggesting weakening selling pressure and growing buyer confidence.
[Gala (GALA) Daily Chart]:GALA’s MACD divergence signals a potential momentum shift.
Market Context: Altcoins Hinge on Ethereum and Bitcoin Trends
The fate of WLD and GALA hinges on broader market dynamics. A sustained Ethereum (ETH) recovery paired with declining Bitcoin dominance—a metric reflecting BTC’s market share—could amplify altcoin bullishness. Conversely, renewed Bitcoin strength may divert capital away from smaller tokens.
Key Takeaways for Traders
- Breakout Confirmation: Validate wedge breakouts with rising volume to avoid false signals.
- Retest Strategy: Post-breakout retests of the wedge’s upper trendline could offer entry opportunities.
Market Sentiment: Monitor Ethereum’s performance and Bitcoin dominance for macro-directional cues.
As the crypto market navigates uncertainty, WLD and Gala stand at critical junctures. Technical setups favor bullish reversals, but broader trends will ultimately dictate their trajectories.
