The cryptocurrency market has witnessed a significant downturn in recent days, with all major assets experiencing a decline. This bearish trend has resulted in liquidations totaling $117.25 million in the past 24 hours. Among the affected altcoins, Worldcoin (WLD) has seen a reversal of its recent upward momentum, despite a moderate gain in the preceding days.
WLD’s price has fluctuated within a narrow range, with a high of $2.32 and a low of $2.19 in the past 24 hours. At press time, the asset is trading at $2.27, down over 1%. The daily trading volume has also dropped by 16% to $197 million, leading to a WLD liquidation of $1.45 million.
To address liquidity concerns, the Worldcoin Foundation has distributed 5.3 million WLD tokens worth $12 million to five market makers, including Wintermute, GSR, Flow Traders, Auros Global, and Amber. This strategic move aims to bolster market liquidity and support the asset’s price.
Since April 29, 2024, the WLD tokens have been gradually released from the Worldcoin Foundation’s cold wallet. Over the past six months, a total of 44.9 million WLD tokens valued at $103.27 million have been transferred.
Technical Analysis: A Bearish Outlook
A technical analysis of WLD’s four-hour chart indicates a market sentiment that is approaching the neutral zone. The daily relative strength index (RSI) stands at 45, suggesting a lack of strong bullish or bearish momentum. Additionally, the asset’s daily frame shows the short-term 9-day moving average below the long-term 21-day moving average, indicating a bearish trend. Furthermore, the Moving Average Convergence Divergence (MACD) indicator is below the signal line, reinforcing the bearish pressure and suggesting the potential for a further decline.
Price Prediction
Based on the current market conditions, Worldcoin’s price is likely to face downward pressure. If the bearish trend continues, WLD could fall to the $2.20 range. However, a potential rebound to $2.24 is not entirely ruled out. On the upside, a break above the $2.30 resistance level could signal a stronger bullish momentum, potentially leading to a price target of $2.35.
The cryptocurrency market remains volatile, and investors should exercise caution and conduct thorough research before making any investment decisions.
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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