- WLD pumps 14% in 24 hours ahead of key update.
- Despite overbought conditions, WLD still had a great risk-reward ratio.
Worldcoin [WLD] recorded significant front-running ahead of an update from OpenAI founder Sam Altman. The update, scheduled for the 17th of October, will also be addressed by Tools for Humanity (TFH) CEO Alex Blania.
Two days before the event, the altcoin jumped 12% in 24 hours, rallying from $2.0 to $2.3.
So far, major crypto events have become ‘sell the news’ updates. Ergo, the recent rally might have been a front-running event that could be offloaded during or after the event.
If so, what are the key targets to track?
Key levels to watch
Source: WLD/USDT, TradingView
Since August, WLD’s price action formed an ascending channel (yellow).
Notably, the recent rally confirmed $2.0 as short-term support (white), and the $2.5 level was a confluence of the channel’s range-high and resistance zone (red).
Although chart indicators neared overbought conditions, WLD still had a great risk-reward ratio (R:R) if recovery extended after the event.
There was a potential 80% gain if WLD cleared the $2.5 hurdle and reached the $4.5 target. So, $2.0, $2.5, and $4.5 were crucial targets to watch in the short and medium term.
Bullish Futures market
In the meantime, speculators remained bullish despite the overhead hurdle at $2.5. About 5 million WLD contracts were added on the 14th of October, as shown by a 15% hike in open interest rates (OI).
It meant increased market interest in WLD in the Futures market.
Source: WLD/USDT, TradingView
The positive Funding Rates also supported the bullish sentiment amongst speculators in the Futures market.
However, increased leverage also meant a high risk of liquidation and volatility, which could be experienced on Thursday during Altman and Blania’s expected address.
That being said, $1.9-$2.1 was key support, marked white on charts. According to IntoTheBlock data, several WLD coins (2.59 billion) worth about $6 billion were scooped at the level.
Source: IntoTheBlock
Read Worldcoin [WLD] price prediction 2024 -2025
In short, $2 was crucial support for WLD traders and investors. But the resistance at $2.5 should also be flipped to support for WLD to eye the 80% potential gain if it hits the $4.5 target.
However, a drop below $2 would invalidate the above bullish thesis.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
