Worldcoin (WLD), the token associated with the digital identity app, has endured a rollercoaster ride in the past 90 days. As of July 4, 2024, WLD sits at $2.52, reflecting a staggering 64.9% drop from its March high of $11.82. Regulatory concerns and profit-taking are believed to be the main culprits behind this depreciation.
However, recent signs hint at a potential turnaround. WLD entered oversold territory in June, as indicated by the Relative Strength Index (RSI). This metric gauges momentum, with readings above 70 suggesting an overbought asset and those below 30 indicating an oversold one. On July 1st, WLD’s 4-hour chart displayed an RSI of 21.04, a clear sign of oversold territory.
This triggered a buying spree, with the price surging 6.13% in just 24 hours. The RSI has since climbed to 56.84, suggesting a return of some balance. While this is positive, a reading above 70 would again indicate an overbought state, potentially leading to another price retracement before reaching the coveted $3 mark.
Another positive indicator is the Bulls and Bears indicator, which tracks large buy and sell orders. Currently, there’s a higher concentration of “bulls” – those buying more than 1% of the total trading volume – compared to “bears.” This suggests potential upward pressure on the price, potentially pushing it closer to $3.
Sentiment around Worldcoin has also improved. The Weighted Sentiment metric, which measures the overall online sentiment towards the project, has shifted from negative to a more positive 0.932. This newfound optimism could translate to increased demand for WLD.
Also Read: Worldcoin Crash: Fire Sale or Freefall? (WLD Price Down 58%, Oversold Signal Flashes Buy!)
However, for a sustained recovery, continued bullish momentum and investor confidence are crucial. If WLD holders decide to sell, the price could dip below the $2 support level.
While the recent reversal is encouraging, it’s too early to declare victory. Continued monitoring of technical indicators, investor sentiment, and overall market conditions will be essential to determine if Worldcoin can truly reclaim its lost ground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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