- While the recent increase in volume and Open Interest showed a slightly bullish edge, broader market sentiment remained bearish.
- Traders should keep a close eye on the resistance at $1.7 as a break above this level could signal a stronger recovery.
As the Crypto Fear & Greed Index showed bearish sentiment at the time of writing, Worldcoin [WLD] continued its long-term downward trend and fell below the key support levels on the daily chart.
However, a few triggers can cause a short-term recovery. WLD was trading around $1.63 at the time of writing, up nearly 10% in the past 24 hours.
Worldcoin bears continue to apply pressure
Source: TradingView, WLD/USDT
The continued downtrend took WLD among all major EMAs towards an 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 key resistance points for any potential recovery.
The current price action suggests that WLD is struggling to break above the 20-day EMA, which could be crucial for a sustained recovery.
The downside EMAs indicate that the sellers are still in control, and any rebound from current levels could face strong resistance.
For the bulls to gain 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 broader market sentiment was still in favor of the bears.
The RSI was hovering below 50 and showing a slight bearish edge at the time of writing. Buyers should look for a possible close above equilibrium to assess the chances of an immediate recovery.
Important levels to watch
Immediate resistance is at the 20-day EMA ($1.67). If WLD can break this level and hold, the next target would be the 50-day EMA at $2.08, followed by a possible test of the 200 EMA level.
On the other hand, the support at $1.41 is crucial. A break below this level could lead to a steeper correction, with the next support around $0.95.
Source: Coinglass
It is worth noting that volume increased significantly by 60.25% to $528.67 million, and Open Interest also increased by 12.52% to $144.08 million.
This indicated growing interest in WLD, but questions remained as to whether this was caused by buyers stepping in or more sellers looking to short the asset.
The long/short ratio over the past 24 hours is close to balance at 1.0068, indicating neutral sentiment among traders.
Realistic or not, here is the market cap of WLD 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 possible recovery.
Buyers should also keep an eye on external factors such as Bitcoin’s macroeconomic trends and sentiment as these are likely to influence WLD’s price action in the short term.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer