Over the past few weeks, the price of Worldcoin (WLD) has shown only a downward trend, which has significantly affected investor sentiment.
Despite a sharp jump in mid-July, the bulls were unable to sustain the growth and curtailed it.
Alameda recently transferred 205,387 WLD tokens worth $352,000. However, Alameda holds over 24 million WLD tokens.
Amid the bearish market sentiment, Worldcoin struggled to find stability and hovered below key moving averages. With the downtrend continuing, the bears held their grip on the $3 mark and could not allow the bulls to cross the cluster.
After a bearish breakout below $4, WLD token continued its correction and fell to $1.30. It marked a new 52-week low this week.
Subsequently, the negative cycle of WLD price trend demonstrated the dominance of sellers, and the token continued to trade under bearish influence.
Worldcoin (WLD) Price Faces Bearish Pressure
At the time of writing, the Worldcoin (WLD) daily chart is in a consistent downtrend and favors the bear cartel. If the token fails to cross the $3 mark, the risk of further decline is on the horizon.
The Relative Strength Index (RSI) curve was floating in the oversold zone. It had a value of 38, which indicated a negative outlook. Similarly, the CMF indicator had a negative value of -0.10, which represented bearish pressure.
@Shelby, in his tweet @Shelby reported that WLD has completed the correction phase and is ready to rise.
$WLD is optimistic 🦈 pic.twitter.com/7hR8KLWGBJ
— Shelby (@CryptoNewton) August 9, 2024
At the time of writing, the price of Worldcoin (WLD) was declining and trading in a bearish trend. The token’s price was barely able to hold its ground in a permanent bearish phase. This was evidenced by the continued formation of lower highs and lower lows on the chart.
Financing rates showed a negative trend
According to CoinGlass, derivatives data gave a negative outlook. The funding rate was in the negative, around -0.040%. This meant that the current situation was likely driven by short sellers who were paying for the privilege of keeping their positions open.
It is also clear that long positions are more expensive than short positions, which confirms the bearish sentiment towards WLD.
Futures Open Interest and Development Activity Data Forecast
Despite the significant price correction, the development activity data looked flat around the 47 mark, close to the midline, meaning that growth in the ecosystem was imminent.
In addition, open interest declined by over 2.07% to $125.95 million. This meant a prolonged downward trend over the past 24 hours, causing negative sentiment among investors.
Network growth data remains negative
Amidst significant bearish sentiment, the network’s growth curve has fallen sharply. It has bottomed out around 77, reflecting a negative stance.
Moreover, the daily active addresses data showed a decline, which meant that investors had lost confidence in WLD and were unwilling to take new long positions, which led to a steady decline in prices.
If the Worldcoin token price crosses the 20-day EMA mark, it could shift the gains towards the $2.00 mark. The $2.30 mark would follow in the short term.
Conversely, if the token encounters a rejection near $1.90, it could fall to $1.50 and then to $1.00.
