Worldcoin‘s [WLD] recent dip to its 11-month low has raised concerns among investors. Despite a slight uptick in volume and Open Interest, the broader market sentiment remains bearish. As the Crypto Fear & Greed Index shows a prevailing bearish sentiment, the question remains: Can WLD bulls turn the tide?
The Downtrend Continues
WLD’s price action has been on a downward trajectory, consistently falling below key support levels. The ongoing downtrend has pushed the token below all major Exponential Moving Averages (EMAs), indicating a strong bearish pressure. The downward-sloping EMAs suggest that sellers are still in control, making any potential recovery uphill.
A glimmer of hope?
While the overall trend is bearish, there are a few factors that could potentially spark a short-term recovery. An increase in volume and Open Interest suggests growing interest in WLD, but whether this is driven by buyers or sellers remains to be seen.
Key Levels to Watch
For WLD to recover, it must break above the 20-day EMA and maintain this level. A successful breach could lead to a test of the 50-day and 200-day EMAs. On the downside, breaking below the $1.41 support level could trigger a steeper correction.
External Factors
Macroeconomic trends and Bitcoin’s sentiment will likely influence WLD’s price action. A positive shift in these factors could provide a much-needed boost to the token.
Conclusion
While Worldcoin’s current outlook is bearish, a recovery is not entirely out of the question. The recent increase in volume and Open Interest, along with potential shifts in external factors, could provide opportunities for bulls to step in. However, investors should remain cautious and closely monitor the market for any significant changes.
