Worldcoin Price Struggles to Rebound: Investor Sentiment Begins to Shift

Worldcoin Price Struggles to Rebound: Investor Sentiment Begins to Shift

Worldcoin (WLD) has seen only a modest recovery of less than 10% after suffering a sharp 46% decline.

While some might interpret this as a bearish signal, it could simply represent a delayed rally, as investor sentiment appears to be turning more positive.

Worldcoin’s Path to Recovery

Over the past two months, Worldcoin has experienced significant challenges, wiping out the altcoin’s impressive 66% rally from mid-July. Now trading at its November 2023 lows, the only way forward for WLD might be up.

This cautious optimism is beginning to reflect among investors, who are slowly shaking off their previous pessimism. This shift in sentiment is evident in the Mean Coin Age (MCA) metric. MCA measures the average duration that coins remain in a wallet before being spent or transferred, providing insight into market sentiment and stability.

Generally, an increase in MCA suggests consistent holding (HODLing), while a decrease indicates a rise in coin movement among addresses. After a difficult period in late July, the MCA has started to tick upward again, indicating a renewed conviction among WLD holders as the recent price drop stabilizes.

This renewed confidence might encourage some investors to take advantage of the current low prices and add WLD to their portfolios. The Market Value to Realized Value (MVRV) ratio further supports this possibility.

The MVRV ratio evaluates investor profit and loss. Currently, Worldcoin’s 30-day MVRV is at -25%, reflecting losses and potential buying interest. Historically, when WLD’s MVRV has been between -10% and -21%, it has often signaled the beginning of recoveries and rallies, marking this as a potential accumulation opportunity.

If this bullish sentiment persists and investors continue to accumulate, Worldcoin’s price could rebound more swiftly.

WLD Price Outlook: Overcoming Challenges

After a 63% drop in June and the first half of July, Worldcoin price attempted a recovery, gaining 66%. However, a bearish market sentiment prevailed, leading to another 46% decline over the next three weeks.

This decline brought the trading price down to $1.70, erasing the gains from the previous rally. Nevertheless, WLD still has an opportunity for profit if it can break through and establish $3.00 as a support level. To achieve this, the altcoin needs to convert the $2.00 resistance level into a support floor.

If Worldcoin fails to break the $3.00 barrier, it may enter a period of consolidation. This scenario occurred in July, potentially setting the price range between $1.76 and $3.00. Prolonged consolidation could undermine the bullish outlook, delaying any potential profits for investors.