Worldcoin Faces Continued Downtrend – Can Bulls Stage a Comeback for WLD?

Worldcoin (WLD) faces continued bearish pressure despite recent gains, with key resistance levels critical for any potential recovery amid neutral market sentiment.
Dot
August 23, 2024
Dean Fankhauser

Dean has an economics and startup background which led him to create Bitcompare. He primarly writes opinion pieces for Bitcompare. He's also been a guest on BBC World, and interviewed by The Guardian and many other publications.

TABLE OF CONTENTS

Worldcoin [WLD] remains under significant bearish pressure, as evidenced by the Crypto Fear & Greed Index indicating a bearish sentiment at the time of writing. The cryptocurrency has continued its long-term downtrend, breaking below critical support levels on its daily chart.

However, there are signs that a short-term recovery might be possible. As of press time, WLD was trading at around $1.63, marking an increase of nearly 10% in the last 24 hours.

Worldcoin Bears Maintain Control

Source: TradingView, WLD/USDT

The persistent downtrend has pushed WLD below all major Exponential Moving Averages (EMAs), with the token nearing an 11-month low. The 20-day EMA is currently at $1.67, the 50-day EMA at $2.08, and the 200-day EMA at $3.42—each of these levels now acting as significant resistance points for any potential recovery.

The latest price action indicates that WLD is struggling to break above the 20-day EMA, a level that could be crucial for a sustained recovery.

"The downward-sloping EMAs indicate that the sellers are still in control, and any bounce from current levels could face strong resistance."

For bulls to regain control, it is essential that WLD closes above the 20-day EMA and holds this level. Although recent increases in trading volume and Open Interest suggest the potential for a bounce, the broader market sentiment continues to favor the bears.

The Relative Strength Index (RSI) remains below the 50-mark, showing a slight bearish edge at the time of writing. Buyers should look for a close above equilibrium to assess the chances of an immediate recovery.

Key Levels to Monitor

Immediate resistance is identified at the 20-day EMA ($1.67). If WLD can break and hold above this level, the next targets would be the 50-day EMA at $2.08, followed by a potential test of the 200-day EMA level. On the downside, crucial support is at $1.41. A break below this level could lead to a deeper correction, with the next support around $0.95.

Source: Coinglass

Trading volume has increased significantly by 60.25% to $528.67 million, and Open Interest has risen by 12.52% to $144.08 million, suggesting growing interest in WLD. However, it remains uncertain whether this interest is driven by buyers stepping in or more sellers looking to short the asset.

The long/short ratio for the last 24 hours stands almost balanced at 1.0068, indicating a neutral sentiment among traders. On Binance, however, the WLD/USDT long/short ratio is highly bullish at 2.7341, showing that many traders are hopeful for a potential recovery.

Buyers should keep an eye on external factors such as macroeconomic trends and Bitcoin’s sentiment, as these will likely influence WLD’s price action in the near term.

Worldcoin Faces Continued Downtrend – Can Bulls Stage a Comeback for WLD?

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Contents

Worldcoin [WLD] remains under significant bearish pressure, as evidenced by the Crypto Fear & Greed Index indicating a bearish sentiment at the time of writing. The cryptocurrency has continued its long-term downtrend, breaking below critical support levels on its daily chart.

However, there are signs that a short-term recovery might be possible. As of press time, WLD was trading at around $1.63, marking an increase of nearly 10% in the last 24 hours.

Worldcoin Bears Maintain Control

Source: TradingView, WLD/USDT

The persistent downtrend has pushed WLD below all major Exponential Moving Averages (EMAs), with the token nearing an 11-month low. The 20-day EMA is currently at $1.67, the 50-day EMA at $2.08, and the 200-day EMA at $3.42—each of these levels now acting as significant resistance points for any potential recovery.

The latest price action indicates that WLD is struggling to break above the 20-day EMA, a level that could be crucial for a sustained recovery.

"The downward-sloping EMAs indicate that the sellers are still in control, and any bounce from current levels could face strong resistance."

For bulls to regain control, it is essential that WLD closes above the 20-day EMA and holds this level. Although recent increases in trading volume and Open Interest suggest the potential for a bounce, the broader market sentiment continues to favor the bears.

The Relative Strength Index (RSI) remains below the 50-mark, showing a slight bearish edge at the time of writing. Buyers should look for a close above equilibrium to assess the chances of an immediate recovery.

Key Levels to Monitor

Immediate resistance is identified at the 20-day EMA ($1.67). If WLD can break and hold above this level, the next targets would be the 50-day EMA at $2.08, followed by a potential test of the 200-day EMA level. On the downside, crucial support is at $1.41. A break below this level could lead to a deeper correction, with the next support around $0.95.

Source: Coinglass

Trading volume has increased significantly by 60.25% to $528.67 million, and Open Interest has risen by 12.52% to $144.08 million, suggesting growing interest in WLD. However, it remains uncertain whether this interest is driven by buyers stepping in or more sellers looking to short the asset.

The long/short ratio for the last 24 hours stands almost balanced at 1.0068, indicating a neutral sentiment among traders. On Binance, however, the WLD/USDT long/short ratio is highly bullish at 2.7341, showing that many traders are hopeful for a potential recovery.

Buyers should keep an eye on external factors such as macroeconomic trends and Bitcoin’s sentiment, as these will likely influence WLD’s price action in the near term.

Dean Fankhauser

Dean has an economics and startup background which led him to create Bitcompare. He primarly writes opinion pieces for Bitcompare. He's also been a guest on BBC World, and interviewed by The Guardian and many other publications.

Worldcoin [WLD] remains under significant bearish pressure, as evidenced by the Crypto Fear & Greed Index indicating a bearish sentiment at the time of writing. The cryptocurrency has continued its long-term downtrend, breaking below critical support levels on its daily chart.

However, there are signs that a short-term recovery might be possible. As of press time, WLD was trading at around $1.63, marking an increase of nearly 10% in the last 24 hours.

Worldcoin Bears Maintain Control

Source: TradingView, WLD/USDT

The persistent downtrend has pushed WLD below all major Exponential Moving Averages (EMAs), with the token nearing an 11-month low. The 20-day EMA is currently at $1.67, the 50-day EMA at $2.08, and the 200-day EMA at $3.42—each of these levels now acting as significant resistance points for any potential recovery.

The latest price action indicates that WLD is struggling to break above the 20-day EMA, a level that could be crucial for a sustained recovery.

"The downward-sloping EMAs indicate that the sellers are still in control, and any bounce from current levels could face strong resistance."

For bulls to regain control, it is essential that WLD closes above the 20-day EMA and holds this level. Although recent increases in trading volume and Open Interest suggest the potential for a bounce, the broader market sentiment continues to favor the bears.

The Relative Strength Index (RSI) remains below the 50-mark, showing a slight bearish edge at the time of writing. Buyers should look for a close above equilibrium to assess the chances of an immediate recovery.

Key Levels to Monitor

Immediate resistance is identified at the 20-day EMA ($1.67). If WLD can break and hold above this level, the next targets would be the 50-day EMA at $2.08, followed by a potential test of the 200-day EMA level. On the downside, crucial support is at $1.41. A break below this level could lead to a deeper correction, with the next support around $0.95.

Source: Coinglass

Trading volume has increased significantly by 60.25% to $528.67 million, and Open Interest has risen by 12.52% to $144.08 million, suggesting growing interest in WLD. However, it remains uncertain whether this interest is driven by buyers stepping in or more sellers looking to short the asset.

The long/short ratio for the last 24 hours stands almost balanced at 1.0068, indicating a neutral sentiment among traders. On Binance, however, the WLD/USDT long/short ratio is highly bullish at 2.7341, showing that many traders are hopeful for a potential recovery.

Buyers should keep an eye on external factors such as macroeconomic trends and Bitcoin’s sentiment, as these will likely influence WLD’s price action in the near term.

Written by
Dean Fankhauser