Worldcoin [WLD] Price Drop: A 34% Decline and What’s Next for the Token?

Worldcoin [WLD] Faces Ongoing Downtrend: Key Price Levels to Monitor for Potential Reversal

Worldcoin (WLD) has experienced a significant downturn, shedding 34% in just over three weeks. After a bullish market structure break in early January, the market initially expected a recovery. However, since then, investors have faced a continued downtrend, with looming token unlocks further fueling bearish expectations.

Bears Take Control as Worldcoin Drops to Key Support Levels

In recent weeks, Worldcoin has retraced almost entirely to the 100% Fibonacci retracement level at $1.589, showing clear signs of weakening investor sentiment. The drop became more apparent as the bulls failed to defend the $2.14 support level, which was crucial as it represented the 78.6% Fibonacci retracement.

This failure triggered a decline toward the $1.59 level, and despite some volatility around this price point, the selling pressure has remained persistent. The On-Balance Volume (OBV) indicator has steadily trended downward throughout January, suggesting that selling pressure continues to outweigh buying activity.

No Immediate Signs of Recovery

The daily Relative Strength Index (RSI) has remained below neutral 50 for almost six weeks, reinforcing the bearish sentiment in the market. Additionally, the Open Interest has been steadily declining, reflecting a decrease in market confidence and further reinforcing the prevailing negative outlook.

Investors are now watching the $1.4 support zone closely, as it marks where a recovery began in September 2024. A potential reversal in the OBV trend and defense of the $1.6 level could indicate a possible shift in sentiment, but at this time, these scenarios appear unlikely.

Short-Term Sentiment Remains Bearish

The swift downturn on January 27th, accompanied by a series of long liquidations, saw Worldcoin retest the $1.8-$1.85 short-term support zone. Spot CVD data shows a steady decline over the last five days, further emphasizing the bearish trend. As it stands, Worldcoin faces significant challenges in the near term, with few signs of immediate recovery.

As the market continues to assess these key support levels and indicators, Worldcoin’s path forward remains uncertain, with ongoing bearish sentiment dictating its price action.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.