Worldcoin Price Slumps: Is Further Decline Imminent?
Worldcoin (WLD) has seen a 34% decline in just over three weeks, erasing earlier gains and raising concerns about future price movements. This downturn follows a failed bullish market structure break in early January, leaving investors facing continued losses.
Bearish Momentum and Key Support Levels
The daily chart reveals a consistent bearish trend since mid-December. Persistent selling pressure and a lack of investor confidence have hindered any significant price recovery. The upcoming token unlocks further fuel bearish sentiment.
Recent price action has seen Worldcoin retrace almost completely to the 100% Fibonacci retracement level at $1.589. The failure to defend the $2.14 support level (the 78.6% Fibonacci retracement) signaled a likely drop toward $1.59. Despite some volatility around this level, selling pressure has remained strong.
The On-Balance Volume (OBV) has consistently trended downward throughout January, nearing November lows. This low buying volume suggests further price drops are possible. The next key support level to watch is $1.4, a level from which a recovery began in September 2024.
Technical indicators, such as the Relative Strength Index (RSI), have been below the neutral 50 level for six weeks, reinforcing the bearish outlook. A defense of $1.6 and a reversal in the OBV would signal potential bullishness, but this scenario currently appears unlikely.
Source: WLD/USDT on TradingView
Source: Coinalyze
Short-Term Outlook and Bearish Sentiment
The short-term outlook is strongly bearish. The sharp price drop on January 27th resulted in significant long liquidations. This coincided with a retest of the $1.8-$1.85 short-term support zone. The declining Cumulative Volume Delta (CVD) over the past five days, coupled with falling Open Interest, underscores the prevailing bearish sentiment and selling pressure.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice.
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