Worldcoin (WLD) is currently facing a major test of support after experiencing a significant drop of 67% from its all-time high. The price failed to break through the Ichimoku Cloud at $5, indicating a strong resistance level. Moreover, the price broke below the 200 EMA and saw a 21% decline on a single daily candlestick, setting the stage for a bearish trend. The price has now stabilized around $3.69, near an important resistance level that previously served as support.
If the price manages to reclaim the $4.45 level and break above it, there could be a shift towards a more positive trajectory for WLD in the mid-term. On the other hand, dropping below $3.69 could lead to further declines and test lower support levels, such as $2.55.
The sell-off pressure on Worldcoin has been persistent, with sharp declines observed in the past weeks. The number of active addresses has also decreased, indicating reduced user engagement. From May 12 to June 12, the price of Worldcoin plummeted by 34%, accompanied by a 35.1% decline in active addresses. This suggests a waning interest among users, potentially driven by the declining price and overall market sentiment.
In terms of strategic recommendations, a positive scenario would involve the price reclaiming the $4.45 level, attracting new buyers, and restoring confidence among existing investors. This could lead to increased trading volume and positive momentum. However, a negative scenario could arise if the price drops below $3.69, triggering further sell-offs and increasing bearish sentiment.
Overall, Worldcoin is currently facing a critical support test, and the outcome will determine its future trajectory.