Worldcoin (WLD) Faces Major Support Test After 67% Drop from All-Time High

5 months ago 5

ARTICLE AD BOX

Worldcoin (WLD) price failed to enter the Ichimoku Cloud, indicating a strong resistance at $5.

The price broke below the 200 EMA last Friday and experienced a 21% decline on a single daily candlestick following this price drop.

Worldcoin Holds Support Despite Persistent Bearish Trend

This significant price action set the tone for the subsequent bearish trend observed over the analyzed period. Additionally, the price has reverted to reach an important resistance level at $4.45, which served as support in the past and corresponds to a 4-hour Ichimoku baseline plateau.

Currently, the price has stabilized around the $3.69 mark. Another important Baseline (Ichimoku) plateau that served as a key resistance level during December 2023.

If the price manages to reclaim the $4.45 level and breaks above it, this could potentially shift WLD’s mid-term outlook to a more positive trajectory. Conversely, dropping below $3.69 could push the price down to lower support levels, such as $2.55.

Worldcoin Faces Major Sell-Off

The subsequent weeks from June 2 and June 9 exhibited sharp declines, with prices plummeting to $4.25 and $3.81, respectively. This indicates persistent sell-off pressure and a lack of buying support at these leve ls.

On May 12, the number of active addresses was 1,963, signaling robust user engagement. However, this metric steadily declined, falling to 1,267 by June 9.

From May 12 to June 12, 2024, Worldcoin’s price plummeted by 34%. Underscoring a period of significant bearish pressure. The number of active addresses declined by approximately 35.1%, dropping back to levels seen in mid-February 2024.

The reduction in active addresses suggests a waning interest among users, possibly driven by the declining price and broader market sentiment. This drop in active addresses aligns with the bearish price action, indicating reduced participation and potential exit of market participants.

Strategic Recommendations

Positive Scenario: If Worldcoin’s price manages to reclaim the $4.45 level and break above it, this could potentially shift WLD’s mid-term outlook to a more positive trajectory. This price movement would likely attract new buyers and restore confidence among existing investors, leading to increased trading volume and positive momentum.

Negative Scenario: Conversely, if the price drops below $3.69, this could push the price down to lower support levels, such as $2.55. Breaking this key support level might trigger further sell-offs, increasing bearish sentiment and leading to additional downward pressure.

The post Worldcoin (WLD) Faces Major Support Test After 67% Drop from All-Time High appeared first on BeInCrypto.

Read Entire Article