In the last month, there has been a consistent decline in the value of Worldcoin [WLD], witnessing a loss of 11.70%.
This downward trend persists on a daily basis, with an additional 5.74% decrease, signaling significant bearish dominance and increasing the chances of further declines.
CryptoCrypto sheds light on the consequences of the current market trajectory and the potential outcomes for the asset.
Approaching September’s Bottom?
WLD is edging closer to a crucial support level that has historically propelled its price upwards multiple times. Nonetheless, the current scenario appears likely to deviate from past patterns.
After encountering resistance at $2.398, the asset recently experienced a notable slump, leading to a 5.78% decrease. At this pace, WLD might either bounce back from the support level or descend further.
A scenario of the latter nature would trigger an additional 41.88% decrease, driving WLD down to its September low of $1.284.
Technical indicators, such as the Parabolic SAR and Relative Strength Index (RSI), indicate the probability of further price drops.
Presently, the Parabolic SAR, which assesses market sentiment by generating dots above (sell) or below (buy) price levels, reveals bearish sentiment with dots positioned above the price, exerting downward pressure.
Likewise, the RSI, which quantifies sentiment on a scale where values below 50 indicate intense selling pressure and values above 50 imply buyer interest, stands at 39.49. This figure demonstrates substantial bearish dominance, suggesting possible further declines in WLD’s price.
Growing Contract Liquidations
Open Interest, measuring the quantity of open derivative contracts in the market, indicates a strengthening bearish sentiment.
The Open Interest has dwindled by 4.52% to $286 million, hinting that market participants are closing their positions. Additionally, a 17.97% plunge in trading volume to $431 million confirms the firm grip of bears, heightening the likelihood of more price declines.
In light of these indicators, WLD faces an escalated risk of descending to its September low. Nevertheless, a deeper analysis suggests that this decline could be postponed.
Can Development Endeavors Sustain WLD?
Worldcoin, the entity behind WLD, has been recently acknowledged as one of the leading projects in terms of development activities, with a 240% surge over the previous 30 days, trailing projects like Arbitrum, according to Chain Broker.
An upsurge in development activity typically signifies continuous enhancements geared towards enriching the overall project experience, often yielding positive effects.
Should this trend persist, it might delay the potential price decline of WLD before any further downward movements occur.