Worldcoin loses its traction as prices consolidate near $2
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The price action and sentiment were bearish behind WLD.
- A move to the $1.85 lows could provide a bounce but bulls can wait for a break in structure before buying.
Worldcoin [WLD] was listed on major exchanges less than a week ago. The prices rocketed higher as investors looked to bag some WLD for themselves. This demand was not sustainable and WLD formed a range on the chart.
How much are 1, 10, or 100 WLD worth today?
Worldcoin demand brought increased activity to Optimism [OP] but WLD itself could consolidate near the $2 mark over the coming days. Can investors and traders expect demand to drive prices higher once more?
A wild pump on the day of listing is nothing newMost tokens see a huge jump in prices when they are listed on one or multiple major centralized exchanges. Short-term traders and buyers flock in expecting demand to continue to soar. Instead, the price retraces most of the sudden gains just a few hours or days later.
This was what WLD faced as well. The RSI was below the neutral 50 mark on the 1-hour chart, showing bearish momentum. The price action showed a range (yellow) that extended from $1.85 to $2.57, with the mid-range mark at $2.21.
This mid-range level was likely to be tested as support soon. An encouraging factor for bulls was that the OBV has inched higher over the past few days even though it saw a drop on 30 July. If the OBV can rise higher as WLD trades within the range, it would be a sign of accumulation.
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The speculator sentiment was not enthusiastic a week after the WLD listingWhile accumulation was a possibility, another one that traders and investors must beware of is the never-ending downtrend. Many altcoins have cycles of hype followed by extended losses. For Worldcoin, the Open Interest began to decline over the past 24 hours to signal bearish sentiment.
The spot CVD has also trended downward over the past five days and has not begun to reverse. The funding rate showed bears had strength as short positions were favored. WLD buyers can wait for a retest of the range lows in the $1.85 region to reassess market sentiment.