Worldcoin price displayed weakness, getting rejected by its descending resistance. Analysis suggests more downside is to be expected.
Key Takeaways
- Worldcoin got rejected at its descending channel resistance.
- WLD’s dip below $5 suggests another low soon.
- The crypto’s next target could be less than $3.
Worldcoin has been in a downtrend since its March 10 all-time high of $12, fallinf over 60% to $4 on April 13. Since then, we have seen some positive price action hinting at a potential upturn as it recovered to nearly $6.
But since April 24, WLD has continued to move down and dipped below $5. This could be interpreted as a sign of weakness, indicating more downside.
Worldcoin (WLD) Fundamentals
Looking at investors’ profitability , we can see that there is slightly more out of money. Of the total addresses, 44.27% are in the money, while 5.72% are at the money, leaving 50% unprofitable.
This can indicate an overall neutral picture, but looking at the clusters, more buyers are below the current price than sellers, meaning they are likely to provide price support. However, at the current average price of $4.84, there are 1140 addresses with 14.3 million WLD volume whose sentiment is still being determined.
Regarding the address stats , we see a downtrend from February, which persisted until April 22. Since then, the number of active addresses has increased from a low of 274 to a high of 359 today. This also applies to the new addresses, where we saw a increase from 96 to 116.
Worldcoin (WLD) Price Analysis
From its all-time high of $12 in early March, the price started forming a descending channel and fell slightly below $4 on April 13. The daily chart RSI signaled oversold conditions, and we saw a bounce from the 0.786 Fibonacci retracement level.
With MACD starting to signal an uptrend, there was a chance that this downtrend would end, and a new bull phase would begin. But this possibility diminished with the price dipping below $5.
This is because WLD got rejected at the descending resistance again, forming yet another lower high. If it had made a breakout, that could have implied the start of a new bull phase. Now, however, because it displayed weakness, another low looks more likely.
If this is true, WLD could retest its ascending baseline support. If that is the case, it could fall to below $3.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only. It should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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