Worldcoin (WLD) has encountered a substantial price drop, falling by 10.96% in the past 24 hours to trade at $1.85 at the time of writing. Despite the bearish price action, the 24-hour trading volume stood at an impressive $434.17 million, indicating sustained activity from traders.
Descending Trendline Holds WLD in a Bearish Grip
WLD continues to trade in a clear downtrend, forming lower highs and lower lows while remaining below a descending trendline. This pattern signals persistent selling pressure.
The next crucial support level is at $1.54, where significant sell-side liquidity has accumulated. This zone will be critical to monitor, as a breach could accelerate the downward trend.
Resistance Levels for Recovery
If Worldcoin attempts a recovery, key Fibonacci retracement levels will play an essential role. Resistance levels to watch include:
- $2.02 (23.6% retracement)
- $2.58 (38.2% retracement)
- $2.88 (50% retracement)
Additionally, the Fair Value Gap (FVG) between $3.00 and $3.50 presents a distant but notable target in the current bearish scenario.
Volatility Insights with Bollinger Bands
Bollinger Bands indicate contracting volatility for WLD. The price is currently approaching the lower band at $1.8074, which suggests that the asset might be entering oversold territory. Should there be an upward push, the middle band at $2.1860 will act as an important resistance zone.
Market Sentiment and Technical Indicators
- Directional Movement Index (DMI): The DMI highlights weak bullish momentum, with the +DI at 14.93 lagging behind the -DI at 16.41. The Average Directional Index (ADX) at 23.65 suggests a mild bearish trend but could indicate stronger selling pressure if it rises above 25.
- Relative Strength Index (RSI): At 38.28, the RSI is well below the neutral 50 mark, reflecting bearish sentiment. If the RSI approaches 30, it could indicate oversold conditions, signaling an opportunity for buyers to step in.
On-Chain Data Highlights Renewed Interest
On-chain activity suggests that while the price is under pressure, market participants remain engaged. According to data from IntoTheBlock:
- Large transactions peaked at 250 in early December but have since stabilized. A seven-day low of 20 transactions was observed on January 15, followed by a recent peak of 79 transactions on January 20.
- Active addresses have shown consistency, with a 30-day average of 34.97k. The trendline indicates a steady rise in cumulative addresses, reflecting growing user engagement despite price volatility.
What Lies Ahead for Worldcoin?
While Worldcoin faces a challenging market environment, several factors suggest a potential rebound:
- The oversold conditions indicated by Bollinger Bands and RSI may trigger a corrective rally.
- The critical support at $1.54 could act as a base for recovery if buyers re-enter the market.
For a bullish scenario, WLD must overcome resistance levels starting at $2.02. Breaking past $2.58 and $2.88 would strengthen recovery efforts, while the distant FVG target of $3.00–$3.50 would require a significant shift in market sentiment.
