- Worldcoin has exhibited bearish momentum on the daily chart since mid-December.
- The steady selling pressure and lack of speculative conviction meant recovery was doubly hard for the bulls.
Worldcoin [WLD] has shed 34% in just over three weeks after the buyers enforced a bullish market structure break on the daily in the first week of January.
This move was expected to initiate a recovery, but investors have only witnessed pain since then. The looming token unlocks fortified the bearish expectations.
Worldcoin bears crumple psychological levels
Source: WLD/USDT on TradingView
Worldcoin has retraced almost all the way to the 100% retracement level at $1.589. In recent weeks, the bulls’ inability to defend the $2.14 support level was indicative of a drop toward $1.59.
This was because $2.146 was the 78.6% Fibonacci retracement level.
WLD saw volatility around this support level, but the selling pressure has been persistent. The OBV has steadily trended downward in January, and at press time was near the lows from November.
The lack of buying volume meant further losses could be expected. The next support zone to watch was $1.4, which was where a recovery began from in September 2024.
The daily RSI has been below neutral 50 for the best part of the past six weeks.
The defense of $1.6 and a reversal in the selling trend on the OBV would be early signals of bullishness – but at press time, this outcome appeared unlikely.
Source: Coinalyze
The short-term sentiment was strongly bearish. The swift move downward on Monday the 27th of January saw a flurry of long liquidations.
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This came alongside a WLD retest of the $1.8-$1.85 short-term support zone.
The spot CVD has been in a steady decline over the past five days. The Open Interest was also sliding lower alongside the price. Together, they outlined bearish sentiment and selling pressure.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
