Worldcoin Tests Key Support at $1.54 Amid Bearish Trends: Potential for Recovery?

• The recent downturn for Worldcoin brings its price to $1.85, closely approaching a critical support level at $1.54 as market dynamics evolve.

• The cryptocurrency’s decline is marked by substantial trading activity, with a notable volume of $434 million within the last 24 hours, even amid bearish trends.

• According to COINOTAG, “Worldcoin’s price trajectory remains subdued below the descending trendline, prompting scrutiny over its immediate recovery prospects.”

Worldcoin’s price has dropped to $1.85, approaching crucial support at $1.54 as trading volume surges amidst challenging market conditions.

Key levels to watch in Worldcoin’s downtrend

As Worldcoin navigates its current bearish phase, traders should monitor essential resistance levels that may signal potential price recovery. The Fibonacci retracement levels stand at $2.02 (0.236), $2.58 (0.382), and $2.88 (0.5). These points are anticipated to act as significant hurdles for any rebound efforts in the near term.

Additionally, the Fair Value Gap (FVG), seen between $3.00 and $3.50, represents a more distant target in the context of the current downtrend.

Source: TradingView

The Bollinger Bands (20) analysis indicates a contraction in volatility, with Worldcoin’s price nearing the lower band at $1.8074. This movement suggests potential oversold market conditions, while the middle band at $2.1860 remains a crucial resistance point for prospective recoveries.

Market sentiment and indicators

The market sentiment surrounding Worldcoin is reflected in various technical indicators. The Directional Movement Index (DMI) suggests a weakening bullish momentum, as shown by the +DI at 14.93 falling below the -DI at 16.41, complemented by an ADX value of 23.65 indicating a mild bearish trend.

Should the ADX rise past 25, this could signify intensified selling pressure in the near future.

As for the Relative Strength Index (RSI), it currently stands at 38.28, positioning below the neutral threshold of 50 and indicating prevailing bearish sentiment. A decline nearer to 30 could signal oversold conditions, opening up potential rebate opportunities for buyers.

Large transactions and address activity

Recent transaction data highlights a surge in significant transaction activity, with IntoTheBlock reporting a peak of 250 transactions during early December. The stability of transactions has been observable, with a seven-day low of 20 reached on January 15, followed by a spike to 79 transactions by January 20.

Source: IntoTheBlock

In the latest hour, Worldcoin witnessed 79 transactions, indicating a resurgence of interest amid bearish pressures. Furthermore, the cumulative addresses registered a 30-day average of 34.97k, with fluctuations highlighting user activity, including a low of 34.16k on December 22 and a high of 35.76k on January 19.

Source: IntoTheBlock

This steady increase in active addresses suggests user engagement remains resilient in the face of current price volatility.

Conclusion

In conclusion, as Worldcoin grapples with its current market challenges, traders should remain vigilant around the critical support levels and market indicators discussed. The resilience displayed through transaction volume and active addresses could suggest underlying strength despite superficial price declines. Future movements will be heavily influenced by potential recoveries if key resistance levels are breached, offering a keen interest for market participants.