Key Takeaways
Why has WLD dropped by 60% from its recent peak?
Broader weak sentiment has dragged WLD lower on the charts.
Is a price recovery likely?
People have been buying the dip. Hence, a rebound could be feasible if the broader market sentiment improves.
Worldcoin [WLD] has erased nearly 60% of its September gains amid the broader market’s bearish sentiment. This, after the altcoin rallied by 2x following a treasury firm announcement backed by Fundstrat’s Tom Lee.
While it jumped from $1 to over $2.2, it has since dropped by 60% to $1.2 at press time. In fact, the pullback cracked key support levels and the previous higher high, effectively morphing the price action to a bearish trend.
When will WLD bottom out?
Source: WLD/USDT, TradingView
On the price charts, the first potential support seemed to be at $1.5-$1.6 – A golden zone that could have eased the correction. However, short sellers smashed it and dragged the price below the next support at $1.4.
The technical indicators also dipped to neutral levels, at the time of writing. Notably, the RSI briefly slipped below the equilibrium level while the OBV was on the verge of cracking below its September breakout level.
If the indicators hold above these key levels, a reversal would be possible.
However, if they drop further, an extended price dip towards $1 and an effective correction of all of September’s gains could be feasible.
If so, the next lower levels to track would be $1.16, $1 and $0.84, which are key lower liquidity pools and potential price magnets. They tend to be hit during price swings or liquidity hunts.
Source: CoinAnk
Grabbing the dip?
That being said, there was a surprisingly relative decline in exchange sell pressure. Despite the dump seen over the past few days.
Santiment data revealed that Supply on Exchanges (potential exchange selling pressure) hit record lows of -57 million WLD on the charts.
Source: Santiment
For perspective, when WLD doubled from $1.5 to $3 in late 2024, exchange selling pressure also increased 2x – From 88 million WLD to over 160 million WLD.
On the contrary, the recent 2x upswing was marked by a massive accumulation as users grabbed the dip.
In other words, smart players have been buying the dip and may be expecting another rally in the mid-term. It would be hard to fade Worldcoin’s push for ‘proof of humanity’, especially as AI agents go mainstream.
The aforementioned backdrop and the ongoing accumulation could spark a recovery if broader market sentiment improves.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
