Worldcoin (WLD) bulls are facing a hurdle. Their attempts to push the price above $6.188, a crucial technical resistance level, have been unsuccessful. This level needed a daily closing price above it to flip the overall structure bullish.
Technical Resistance Holds Strong
On April 23rd, WLD formed a lower high at $6.188, indicating seller dominance. Currently trading around $4.70, WLD is close to a former resistance zone from December 2023 that now acts as potential support. Both the daily and higher timeframes point towards a bearish trend, reinforced by the recent 21% price drop.
While social volume has seen surges in the past two months, it remains significantly lower compared to February’s peak. Similarly, development activity, though consistent, falls short when compared to giants like Solana (SOL) or Cardano (ADA).
Further adding to the bearish sentiment, the 3-day weighted sentiment has been negative since March, reflecting a decline in enthusiasm for WLD.
A Glimmer of Accumulation Hope?
A silver lining emerges in the form of rising daily active addresses since late March. This indicates potential network growth despite the price woes. The mean coin age, another indicator of accumulation, also trended upwards in April. However, recent profit-taking as WLD touched $6.18 has partially reversed this trend. Consequently, the MVRV ratio, which attempts to gauge market overvaluation, dipped back into negative territory.
What Lies Ahead for Worldcoin?
Worldcoin investors might face a bearish trend in the near future. A potential bounce off the $4 support zone could lead to a period of consolidation, which could be a buying opportunity for long-term investors. However, a break below $4 could exacerbate the downtrend.
Overall, Worldcoin is at a crossroads. Overcoming the resistance at $6.188 is crucial for a bullish reversal. Conversely, failing to do so could lead to further price declines.
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