Worldcoin (WLD) has shown a significant downturn in this week’s trading, marking it as the week’s most substantial loser with an overall decline of over 16%. The decline started sharply after a brief initial gain at the beginning of the week. Starting around $5.90, WLD saw a rapid descent, with a notable drop of 5.2% on May 13th and a steep 15.28% fall on May 14th. This series of declines brought its price down to around $4.70, struggling to regain its footing in the $5 region.
Key technical levels have become apparent as WLD continues its downward trajectory. Recently, it tested a critical resistance at $6.188, a level previously identified as pivotal for a potential bullish reversal. However, rejection at this high has kept the bearish structure intact, with the price now hovering close to the $4.7 mark, near a significant demand zone on the daily timeframe. This zone previously acted as resistance in December 2023 and now poses a potential turning point for WLD if it can stabilize or bounce back from these levels.
Worldcoin On-Chain Analysis: Signs of Accumulation Amid Bearish Sentiment
Worldcoin (WLD) demonstrates intriguing on-chain activity that contrasts with its recent price performance. Despite the overall negative trend, daily active addresses have been increasing since late March, indicating heightened user engagement and potential accumulation. The mean coin age also rose in April, suggesting that holders were confident in maintaining their investments, although this trend shifted as prices reached resistance levels and profit-taking occurred.
The MVRV ratio for Worldcoin has dipped into negative territory, reflecting that the average holder might currently be at a loss. This scenario typically reduces selling pressure as holders await better prices. However, despite these positive signs of accumulation and engagement, the overall market sentiment remains bearish, influenced heavily by a negative social volume that continues to impact investor confidence and market dynamics.
WLD/USD Faces Downtrend Resistance: Technical Analysis on the 4-Hour Chart
The Worldcoin (WLD) 4-hour chart indicates a clear downtrend as the currency struggles under resistance. Recently, WLD’s trading pattern has been characterized by a descending trend where attempts to break higher have been capped by the upper boundary of the Keltner Channel, specifically around the $5.15 level.
As of now, WLD trades near $4.75, having faced repeated rejections near the $5.12 mark which aligns closely with the 200-period Exponential Moving Average (EMA), further confirming it as a substantial resistance point.
The technical indicators reinforce the bearish outlook; the Relative Strength Index (RSI) hovers below the 45 mark, indicating a lack of strong bullish momentum. Concurrently, the Moving Average Convergence Divergence (MACD) exhibits a bearish crossover beneath its signal line, suggesting ongoing selling pressure.
This is complemented by the MACD histogram, which remains in negative territory, further hinting at bearish control. Given these indicators, the immediate challenge for WLD is to find support above the recent low at $4.61, with the next significant resistance to overcome residing at the moving averages overhead.
