Worldcoin, the crypto project backed by tech billionaire Sam Altman, has suffered a precipitous 81% decline in value over the past five months. The digital asset has been grappling with significant capital outflows, a trend that shows no signs of abating.
Technical indicators paint a bleak picture for WLD holders. The price is currently trading below its 20-day moving average, a bearish signal that suggests downward momentum is prevailing. Furthermore, the Awesome Oscillator and the Chaikin Money Flow (CMF) indicators both reinforce the bearish sentiment, with the CMF indicating a persistent outflow of funds from the market.
Analysts are eyeing the $1.7 level as a potential resistance point, coinciding with a previous support level from early July. However, given the overall bearish trend, breaking this resistance seems unlikely in the near term. Looking further ahead, the 23.6% Fibonacci extension level at $0.89 emerges as a potential bearish target.
Despite the grim outlook, some market participants believe a short-term price bounce is possible before the downtrend resumes. A liquidity cluster between $1.96 and $2.11 could act as a temporary resistance level, potentially triggering a rebound. However, the overall liquidity levels delta remains highly negative, suggesting that any upward movement is likely to be short-lived.
The question on investors’ minds is when the bleeding will stop. With Alameda Research, a former major holder of WLD, still possessing a substantial stake, the threat of further selling pressure looms large. Until this overhang is resolved, it is difficult to envision a sustained recovery for Worldcoin.
As the cryptocurrency market continues to experience volatility, investors are advised to exercise caution and conduct thorough research before making any investment decisions.