Worldcoin [WLD] has faced a significant downtrend recently, with no clear signs of a reversal. This prolonged decline, exacerbated by recent revelations about Alameda’s holdings, has intensified market concerns regarding future selling pressure. A recent report indicated that Alameda still holds approximately 24 million WLD tokens, raising fears of potential future market dumping.
Current Price Dynamics And Technical Indicators
As of the latest analysis, WLD has experienced a dramatic fall from $8.3 to $1.565 within a span of just five months, marking an 81% depreciation. This sharp decline has prompted market participants to question where the next price targets lie and when, if ever, bulls might consider re-entering long positions.
The immediate resistance level appears to be at $1.7, a price point where the 20-day moving average (DMA) currently aligns. This level, which served as support in early July, is now being tested as a resistance zone. The bearish momentum is further reflected by the Awesome Oscillator, which indicates a prevailing negative trend. Additionally, the Chaikin Money Flow (CMF) remains deeply negative, failing to stay above +0.05 since March, signaling persistent capital outflows.
Future Price Targets and Liquidity Clusters
Looking ahead, the 23.6% Fibonacci extension level at $0.89 emerges as the next potential bearish target for Worldcoin. However, a short-term bounce to resistance levels at $1.7 and $2.15 could occur before this downward target is reached. Such a bounce could provide a temporary respite but may not signify a long-term trend reversal.
The liquidity analysis reveals significant clusters above the current market price, specifically between $1.96 and $2.11. These levels represent substantial areas where liquidity is concentrated, potentially creating resistance. On the downside, the $1.22 region is highlighted as a potential area for a bullish reversal, though technical indicators suggest that a further decline towards this level is more likely.
Also Read: Worldcoin Partners With Malaysia In $100M Push For Digital Identity
Short-Selling Strategy and Potential Rebounds
Given the current technical landscape, short-sellers might consider waiting for a bounce to the $1.62 or $1.7 levels, where the largest liquidity pools are situated. This strategy allows for taking profits around the $1.22 area, assuming the bearish trend persists and the market shows no signs of a sustained recovery.
Worldcoin’s ongoing downtrend, coupled with bearish technical indicators and significant liquidity clusters, paints a cautious outlook for the cryptocurrency. While short-term bounces may offer temporary relief, the overall bearish sentiment suggests that traders should be prepared for further declines before contemplating long positions.
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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