Worldcoin price breaks bearish channel with bulls targeting 50-day EMA

Worldcoin broke out of a short-term bearish channel after institutional accumulation and an upcoming reduction in token issuances sparked renewed buying interest, lifting WLD more than 16% from its July 2 low.

According to data from crypto.news, Worldcoin (WLD) climbed to an intraday high of $0.439 on July 3 after recovering from support near $0.35, where buyers stepped in after nearly two weeks of persistent selling.

The rally accelerated after Nasdaq-listed Eightco Holdings disclosed that it holds 283.45 million WLD tokens, equivalent to about 8.1% of the circulating supply. The announcement came as traders were also positioned ahead of a key tokennomic change scheduled for July 24, which will reduce daily WLD unlocks by 43%, reducing emissions from 5.1 million to 2.9 million tokens.

Those two catalysts came as Bitcoin stabilized above the $61,000 region after a weak second half of June, allowing high-beta altcoins to recover. Worldcoin fell about 45% from its June 22 peak near $0.64 before buyers returned, with the combination of easing macro pressures and a large corporate treasury allocation reversing short-term sentiment.

Technical breakout brings the 50-day EMA back into focus

The 4-hour chart shows Worldcoin breaking above a descending channel that has contained price action since late June. Buyers also retook the upper trendline of the channel before pushing the tick to the 50-day exponential moving average, which currently sits near $0.438. Price briefly tested that dynamic resistance before easing slightly.

A sustained move above the 50-day EMA could expose horizontal resistance around $0.445, a level that buyers rejected earlier in the decline. Clearing the barrier would leave the 200-day EMA near $0.47 as the next major upside target.

On the 1-day chart, WLD has already reclaimed the multi-month support zone around $0.36, while Chaikin Money Flow has crossed above zero again, indicating that capital has started to return after several weeks of dispersion. At the same time, the Aroon Up indicator climbed above 85% while Aroon Down fell to zero, showing that buyers have regained control of the prevailing trend.

Momentum indicators on the 4-hour chart also support the recovery. The MACD has completed a bullish crossover, and growing green histogram bars show upward momentum has strengthened since the channel breakout. Trading volume increased along with the advance, reinforcing the move after the sharp pullback from the July 2 low.

According to analyst Unknown.Ai, traders should avoid chasing the initial breakout until resistance gives way.

“A clean 4-hour close above $0.445 reverses the macro bias bullish and clears the runway to the 1d ema200 at $0.471.”

The analyst added that a pullback to the $0.411-$0.415 region could provide a lower risk entry if buyers defend the breakout.

Derivatives positioning also strengthened along with the technical recovery. Open interest rose as fresh positions entered the market, while funding rates turned positive after spending much of the previous decline in negative territory. This combination suggests that new long exposures have entered the market instead of the rally being driven solely by short coverage.

CoinGlass liquidation data also shows tight leverage groups between $0.44 and $0.452, making that region the next area where volatility could accelerate if bulls force another breakout. Below the current price, notable liquidity rests around $0.40 and $0.38, levels that could attract buyers if profit-taking emerges.

Failure to hold breakouts can revive the downtrend

Despite the improved structure, Worldcoin still faces several hurdles before a larger trend reversal is confirmed. The tick remains below the daily 200-day EMA, while the $0.445-$0.47 zone combines horizontal resistance with long-term moving averages that previously acted as support before June’s crash.

A rejection below $0.445 followed by a loss of the $0.411-$0.415 support area will weaken the breakout structure and could send WLD back to the $0.36 support zone. Renewed weakness in Bitcoin or another wave of risk-off sentiment across crypto markets could also slow demand for higher-volatility assets.

Longer term, investors continue to monitor Worldcoin’s regulatory challenges around biometric data collection and its remaining token unlock schedule. Although the upcoming emission reductions ease the pressure in the short term, concerns about the project’s fully diluted valuation remain a factor that could limit sustained increases unless demand continues to absorb future issuances.