Worldcoin [WLD] saw a lackluster performance on Thursday, October 3rd, as its price moved in line with Bitcoin [BTC] and other alternative cryptocurrencies. Currently, WLD is trading at $1.56, reflecting a 9% decrease in the last 24 hours. Over the past week, Worldcoin has fallen by 25%.
Despite OpenAI securing $6.6 billion in new funding at a $157 billion valuation, Worldcoin’s price drop continues.
The project typically responds to updates relating to OpenAI, with backing from OpenAI’s CEO, Sam Altman. Despite this recent funding round, Worldcoin has declined to a weekly low as bears exert more influence on its price.
Worldcoin’s Near-Term Outlook Turns Bearish
Worldcoin has slipped below the 50-day Simple Moving Average (SMA) on the daily chart, indicating a shift to a bearish short-term trend. This decline occurred after the coin failed to defend a critical support level at $1.59.
The Moving Average Convergence Divergence (MACD) line corroborates this bearish trend, having dipped below the signal line. Simultaneously, the MACD histogram bars have turned red, indicating increasing downward pressure.
If the downtrend persists and fails to attract buyers, the next support level to watch is the 1.618 Fibonacci level at $1.15.
Alternatively, in case of a broader market recovery leading to a WLD rally, the next resistance lies at $1.59, potentially shifting the short-term momentum to bullish. Another significant resistance sits at the 0.618 Fib level at $1.78.
Majority of Worldcoin Holders Facing Losses Upward of 84%
Data from IntoTheBlock reveals that the recent price drop has caused a surge in the number of Worldcoin addresses in a state of losses.
In the past week, addresses holding WLD in profit have dropped from 19,300 addresses, constituting 68% of holders, to 24,100 addresses, representing 84% of holders.
Conversely, the addresses in profit have dwindled significantly from 23% to 6%. Increased losses among traders may lead to further selling to mitigate risks, adding to the downward pressure on Worldcoin.
Derivatives Data Signals Bearish Sentiment
Derivatives market data further supports the bearish sentiment towards Worldcoin. According to Coinglass, open interest has declined by 9% in the last 24 hours, indicating traders closing their positions.
This bearish sentiment may have been driven by a rise in liquidations. At present, WLD liquidations total $2.47 million, with $2.15 million resulting from long liquidations.
With the long/short ratio standing at 0.925, indicating a relatively neutral market sentiment, data suggests that short positions slightly exceed long positions, signaling trader bearishness on WLD price performance.
While Worldcoin is not the sole AI-related cryptocurrency facing losses, the entire market cap for AI cryptos is down almost 6% to $26 billion as per CoinGecko data. This broader decline may have contributed to Worldcoin’s subdued performance.