Worldcoin’s price action shows that the downtrend will continue

Posted: September 6, 2023

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

World currency [WLD] Bulls defended the $1.1 support level from Aug. 29, but were forced to give it up in the past 24 hours. This did not bode well for WLD investors as it showed that the downtrend was likely to continue. Bitcoin [BTC] traded within a support zone and could come to the rescue of the altcoin.

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Since August 29, the USDT (Tether) Dominance metric has risen from 7.66% to 8.12%, showing that market participants preferred holding the stablecoin over crypto assets. This was also a hint to the fear in the market.

Can the bears hope for a retest of the previous USD 1.1 support?

Source: WLD/USDT on TradingView

With volatile assets or a strong trend, there may be no clean retests of previous support or resistance levels before a trend continuation. At the time of writing, the 4-hour chart’s RSI was at 33. The OBV has been firmly down since August 30 to highlight strong selling volume.

The market structure on the H4 chart has been bearish due to the formation of lower highs and lower lows in recent weeks. For the past six days, the bulls have been able to defend the $1.1 level. Any uptick in this support formed a lower high, signaling an increasing bearish belief that the bulls’ defenses were weak.

This happened on September 4, after a session that closed below $1.1. The Fibonacci extension levels showed that the 23.6% and 61.8% levels at $0.997 and $0.814 were the next points of interest on the chart. $1 in particular is a strong psychological support, and it could be difficult for the bears to break through this. Still, based on the available evidence, a move below $1 would likely occur.

How much are 1, 10 or 100 WLD worth today?

The negative weighted sentiment was another reflection that losses could be coming

Source: Sanitation

Social media involvement pointed to discouraged buyers and negative expectations for price action and otherwise from Worldcoin. The measure of active deposits peaked on September 1. When the price hit $1.1, there was increased selling pressure even as WLD tested another vital support.

The supply on the stock exchanges has increased slightly over the past ten days, but the age consumed has not shown any major peaks in recent days. The price action and data from Santiment showed that the USD 1 and USD 0.81 levels were likely to be tested soon.