Worldcoin (WLD) has experienced a sharp 34% decline in just over three weeks, sending shockwaves through the market after an initial bullish breakout in early January. Despite an early recovery attempt, the price has continued its downward trajectory, largely influenced by looming token unlocks and sustained bearish sentiment.
After buyers pushed through a bullish market structure break on the daily chart during the first week of January, many expected a recovery to follow. However, the opposite has occurred. The bulls failed to defend key support levels, with WLD dropping significantly from its earlier highs.
The most recent price action shows a near-complete retracement to the 100% Fibonacci level at $1.589. In particular, the $2.14 level, a key support zone, has proven to be unyielding. This level coincided with the 78.6% Fibonacci retracement, making it a psychological barrier that the bulls couldn’t defend, triggering further losses. The constant selling pressure has been evident as the On-Balance Volume (OBV) steadily declined throughout January, signaling that buyers have been largely absent.
Looking ahead, WLD‘s next support zone appears to be around $1.40, the level from which a recovery began in September 2024. Until then, the short-term outlook remains bleak, with the daily Relative Strength Index (RSI) lingering below neutral 50 for the past six weeks, underscoring a lack of buying momentum.
Adding to the bearish case, the spot Cumulative Volume Delta (CVD) has steadily decreased over the past five days, reflecting consistent selling pressure. Additionally, Open Interest has been sliding in tandem with the price, further confirming the bearish sentiment.
At the time of writing, a reversal seems unlikely unless WLD manages to defend the $1.60 level and reverse the downtrend in OBV. For now, traders should brace for further downside potential as market sentiment remains firmly bearish.
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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