WorldCoin (WLD) has been gaining momentum in the cryptocurrency market, showing promising signs of a breakout rally. The altcoin, part of the Ethereum ecosystem, has recently surged past the $2.50 mark, and analysts are predicting that this upward movement could take it to as high as $4.53 in the coming weeks.

With a market capitalization of $1.778 billion, WorldCoin is ranked among the top 65 cryptocurrencies, making it one of the prominent players in the digital asset space. Over the past seven days, WLD has seen an impressive 12.83% increase, and its trading volume has surged past the current market cap, hinting at strong investor interest. The altcoin’s 24-hour trading volume recently exceeded $1 billion, a clear signal of growing demand.

A Strong Recovery Rally

WorldCoin’s price action on the daily chart shows a recovery rally currently unfolding. This rally is taking the shape of a broadening wedge, characterized by two diverging trendlines that signify increasing price volatility. Despite facing resistance at higher price levels, the rally remains strong, with consecutive bullish candles driving the price up by 23.14% in the last six days.

The rally began from the $2.12 support zone, aligned with the 100-day Exponential Moving Average (EMA), which has proven to be a crucial support level. WorldCoin’s price has since surged past the 200-day EMA, indicating continued bullish sentiment in the market. Notably, the 50-day and 100-day EMA lines are on the verge of crossing positively, which is typically a bullish sign for the asset.

Momentum Indicators Support Continued Uptrend

Supporting this positive outlook, the Moving Average Convergence Divergence (MACD) and signal lines are both showing alignment that favors the continuation of the bullish trend. The MACD line has avoided a bearish crossover, and the positive histograms suggest that the buying momentum is gradually increasing.

From a low of $1.28 in September, WorldCoin has seen a remarkable rise of 102% over the past 80 days, showcasing the strength of the ongoing recovery. This has raised optimism among traders and analysts, with some even predicting that the altcoin could soon challenge psychological resistance levels.

Minimal Supply Barriers to Overcome

Crypto analyst Ali Martinez recently highlighted a key point: WorldCoin is facing minimal supply barriers ahead, which further supports the bullish outlook. According to Martinez’s analysis using the global in-and-out-of-money indicator, 95.86% of the volume is “in the money,” suggesting that most holders are currently in profit. This large percentage of profitable holders means that there are fewer sellers at current levels, reducing the resistance to price increases.

Martinez speculated that, with no significant selling pressure ahead, WorldCoin could be on its way to test the $10 mark. However, for the rally to remain intact, the $2.10 support level must be defended. A breakdown below this level would raise concerns about a potential retracement, but as long as it holds, the uptrend remains intact.

Key Price Levels and Targets

Looking ahead, WorldCoin is approaching a critical resistance level at $2.95, which combines a rising resistance trendline with a previous swing high. A breakout above this price could set the stage for a much larger price surge. If WorldCoin can surpass this resistance level, the next significant target is $4.53.

Should the market see a retracement, the key support levels to watch are $2.53 and the 50-day EMA at $2.13. These levels could serve as stepping stones for the price to consolidate before attempting another breakout.

Conclusion: Bullish Sentiment for WorldCoin

WorldCoin’s impressive recovery and positive price action suggest that the altcoin could be heading for higher ground. With minimal resistance ahead, the potential for a breakout rally to $4.53 is becoming more plausible. However, for the uptrend to continue, the $2.10 support level must hold. Traders and investors will be closely monitoring these key levels to determine whether the bullish momentum can be sustained or if a correction is on the horizon.