Worldcoin (WLD) has been under significant pressure in recent weeks, with its price failing to break above a key resistance level and user activity declining sharply. This article dives into the technical analysis and user engagement metrics that paint a concerning picture for the cryptocurrency in the short term.
Price Meets Resistance, User Confidence Wanes
WLD’s price attempted to climb above $5 but was met with strong resistance, ultimately falling below the key 200-day exponential moving average (EMA). This technical indicator often signals a bearish trend, and WLD followed suit with a sharp 21% decline in a single day.
Since then, the price has found some temporary stability around $3.69, a level that previously acted as resistance in December 2023. However, a break above the current resistance point at $4.45 is crucial for a potential turnaround. Reclaiming this level could attract new buyers and boost investor confidence.
Active Addresses Signal Declining User Interest
Adding to the bearish sentiment is the decline in active addresses, a metric that tracks user engagement on the Worldcoin network. On May 12th, the network boasted a healthy 1,963 active addresses, but this number has dwindled to 1,267 by June 9th, representing a drop of over 35%.
This significant decline coincides with the price slump, suggesting that users are losing interest in WLD as its price falls. The drop in active addresses aligns with the reduced trading activity and potential exit of investors from the market.
Also Read: Worldcoin in a Privacy vs. Bot Battle: 90% of Spanish Users Want Back Banned Iris-Scan ID
Crucial Levels to Watch
The coming weeks will be critical for Worldcoin(WLD). If the price can climb above $4.45, it could signal a potential reversal and renewed optimism. Conversely, a drop below the critical support level of $3.69 could trigger further sell-offs and push the price down to even lower levels, potentially as low as $2.55.
Looking Ahead
Worldcoin’s current situation presents both challenges and opportunities. Rebuilding user confidence and increasing network activity will be essential for a price recovery. Whether the bulls can regain control or the bears continue their dominance remains to be seen.
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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