Investors watch key levels and large holders as WLD struggles; potential short-term bounce possible.
Worldcoin (WLD) has faced a challenging period over the past five months, experiencing a significant price drop of 81%. This decline has seen the cryptocurrency's value plummet from $8.3 to $1.565. Investors and market watchers are keenly observing the situation, trying to understand the factors behind this downtrend and what the future might hold for WLD.
The steep decline in Worldcoin's price is attributed to several factors. Technical indicators have consistently pointed towards a bearish momentum, suggesting that the downtrend could continue. The market sentiment has been largely negative, with many investors losing confidence in the cryptocurrency's short-term prospects.
Despite the overall negative outlook, there is a possibility for a short-term price bounce. Analysts suggest that WLD could see a temporary recovery of around 9%-10%. This potential bounce is seen as a response to the highly negative liquidity levels, which might prompt some buying activity to balance out the market. However, it is important to note that this bounce is not guaranteed and the overall trend remains bearish.
Market analysts have identified several key price levels that could play a crucial role in the future of Worldcoin. The potential targets include $0.89, $1.7, and $2.15. These levels are seen as critical points where the price might find support or resistance. Additionally, a possible bullish reversal could occur around the $1.22 level, which is being closely monitored by traders.
One of the significant concerns contributing to the negative sentiment around Worldcoin is the selling pressure from large holders. Alameda, a major holder of WLD tokens, possesses 24 million tokens. The actions of such large holders can significantly impact the market, creating additional downward pressure on the price.
