Worldcoin (WLD) has been in a bearish trend in the last 24 hours, experiencing a 0.63% decline to settle at $4.89 as of press time. The price touched a support level around $4.70, indicating a potential floor where buying interest re-emerges, while resistance was observed near $5.00, suggesting increased selling pressure at this level.
WLD/USD 24-hour price chart (source: CoinMarketCap)
Throughout the day, Worldcoin fluctuated, hitting an intraday low of $4.8521 and a high of approximately $4.9215. This fluctuation within a narrow range highlights the ongoing consolidation phase. The trading volume saw a substantial drop of 41.68%, decreasing to $309,208,509. This significant reduction in volume indicates waning interest or possibly a consolidation phase, contributing to the overall bearish sentiment.
Bearish Flag Pattern and Key Levels
The Worldcoin price chart indicates a bearish flag pattern, a continuation pattern suggesting the potential for further downward movement. Currently priced at $4.899, the coin has been consolidating within a defined range.
The bearish flag is characterized by parallel, downward-sloping trendlines, which typically form after a steep initial decline. Significant support levels are identified at $4.50 and $4.00, which have been tested multiple times, indicating strong buyer interest at these points.
Conversely, resistance levels are around $6.00 and $7.00. The price has struggled to break above these levels, suggesting persistent selling pressure. A breakout above these resistance levels could signal a potential reversal, but the prevailing pattern indicates more downside risk.
WLD/USD 24-hour price chart (source: TradingView)
On the WLD/USD price chart, several technical indicators provide additional insights into the bearish trend. The Relative Strength Index (RSI) is at 49.74, indicating neutral momentum. This suggests that the market is neither overbought nor oversold, but the RSI’s position points towards caution among traders. In addition, the Money Flow Index (MFI), standing at 39.88, reflects relatively low buying pressure. This index measures the flow of money into and out of the asset, and a lower value indicates that more money is flowing out of Worldcoin than into it.
Is a Rally Looming?
This trend reinforces the cautious sentiment observed in the market. The Chaikin Money Flow (CMF) indicator is at -0.09, measuring the volume of money flow over a specified period.
A negative CMF value indicates that there is more selling pressure than buying pressure, suggesting that capital is flowing out of WLD. The Rate of Change (ROC) is at -8.83, indicating a recent decline in price momentum. This momentum oscillator measures the percentage change in price between the current price and the price a specified number of periods ago.
WLD/USD 24-hour price chart (source: TradingView)
The negative value suggests that the price momentum is downward. The Relative Vigor Index (RVGI) shows the green line slightly below the red line, confirming the bearish trend. The RVGI compares the closing price to the trading range, which is typically smoothed over a specified period. The current negative value suggests the continuation of the bearish trend.
Momentum and Volume Analysis
Despite the slight upward movement of Worldcoin price to $4.899, the overall volume trend has been declining. This decrease in trading volume suggests a lack of strong buying interest to counteract the selling pressure. On the price chart, the price briefly touched the intraday low of $4.852, aligning closely with the lower support threshold. This touchpoint indicates that the support level is holding for now, but the persistent bearish trend suggests that this support may be tested again soon.
On the upside, a break above the resistance at $6.00 could potentially signal a bullish reversal. However, given the prevailing bearish flag pattern and the supporting technical indicators, the risk of further downside remains higher. Should the support at $4.50 fail to hold, the next significant target could be as low as $3.00, aligning with the projected target of the bearish flag breakdown.
