- Although the recent increase in volume and open interest showed a slight bullish trend, the overall market sentiment remained bearish.
- Traders should closely monitor the $1.7 resistance, as a break above this level could signal a stronger recovery.
While the Crypto Fear & Greed Index was displaying bearish sentiment at the time of writing, Worldcoin (WLD) continued its long-term downtrend and fell below key support levels on its daily chart.
However, there are a few triggers that can trigger a short-term rally. WLD was trading at around $1.63 at press time, up nearly 10% in the past 24 hours.
Worldcoin Bears Continue to Apply Pressure
Source: TradingView, WLD/USDT
The ongoing downtrend has placed WLD below all major EMAs towards its 11-month low, with the 20-day EMA at $1.67, the 50-day EMA at $2.08 and the 200-day EMA at $3.42.
These levels now serve as important resistance points for any potential recovery.
Current price action suggests that WLD is struggling to break above the 20-day EMA, which could be crucial for a sustained recovery.
The downward sloping EMAs indicate that sellers are still in control and any bounce from current levels could face stiff resistance.
For bulls to take control, WLD must close above the 20-day EMA and hold this level.
The recent increase in volume and open interest suggested there was potential for a rebound, but overall market sentiment still favored the bears.
At the time of writing, the RSI was hovering below 50 and showing a slight downtrend. Buyers should look for a potential close above the breakeven to assess the chances of an immediate recovery.
Key levels to watch
Immediate resistance lies at the 20-day EMA ($1.67). If WLD manages to break and hold above this level, the next target would be the 50-day EMA at $2.08, followed by a potential test of the 200-day EMA level.
On the downside, the support at $1.41 is crucial. A break below this level could lead to a more pronounced correction, with the next support being around $0.95.
Source: Coinglass
It is worth noting that the volume increased significantly by 60.25% to $528.67 million, and the open interest also increased by 12.52% to $144.08 million.
This suggests growing interest in WLD, but the question remains whether this is due to buyers stepping in or more sellers looking to short the asset.
The long/short ratio over the past 24 hours is almost balanced at 1.0068, indicating neutral sentiment among traders.
Realistic or not, here is WLD’s market cap in terms of BTC
However, the WLD/USDT long/short ratio on Binance was very bullish at 2.7341, showing that many traders were hoping for a potential recovery.
Buyers should also monitor external factors, such as macroeconomic trends and Bitcoin sentiment, as they will likely influence WLD’s price action in the near term.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
