Worldcoin price action shows the downtrend is here to stay

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Worldcoin [WLD] bulls defended the $1.1 support level from 29 August but were forced to relinquish it in the past 24 hours. This did not bode well for WLD investors as it showed the downtrend was likely to continue. Bitcoin [BTC] was trading within a zone of support and might come to the altcoin’s rescue.

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Since 29 August the USDT (Tether) Dominance metric has climbed higher from 7.66% to 8.12%, which showed market participants preferred to hold the stablecoin over crypto assets. This was also a hint at the fear in the market.

Can the bears hope for a retest of the $1.1 former support?

With volatile assets or when in a strong trend, clean retests of former support or resistance levels before a continuation of the trend might not occur. At press time, the RSI on the 4-hour chart showed a reading of 33. The OBV has been firmly pointed downward since 30 August to highlight the strong selling volume.

The market structure on the H4 chart was bearish due to the formation of lower highs and lower lows in recent weeks. Over the past six days, the bulls were able to defend the $1.1 level. Each bounce from this support formed a lower high, signaling increased bearish conviction that the bulls’ defense was tenuous.

This materialized on 4 September after a session close below $1.1. The Fibonacci extension levels showed that the 23.6% and 61.8% levels at $0.997 and $0.814 were the next points of interest on the chart. $1 especially is a strong psychological support, and the bears could have a tough time breaking through. Even so, a move below $1 was likely to occur based on the evidence at hand.

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How much are 1, 10, or 100 WLD worth today?

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Negative weighted sentiment was another reflection that losses could be inbound

Social media engagement pointed toward discouraged buyers and negative expectations for price action and otherwise of Worldcoin. The active deposits metric saw a spike on 1 September. When the price was at $1.1, there was increased sell pressure even as WLD retested a vital support.

The supply on exchanges saw a slight increase in the past ten days, but the age consumed did not note large spikes in recent days. The price action and Santiment data showed that the $1 and $0.81 levels were likely to be tested soon.