Worldcoin (WLD) Price Check: Weekly Gains and What's Next?

Worldcoin (WLD) navigates market volatility with recent weekly gains. Will it sustain the momentum, or is a correction on the horizon? Get the latest analysis.

Worldcoin (WLD) Price Check: Weekly Gains and What's Next?

Worldcoin (WLD) has seen some action lately, mirroring Bitcoin's moves. After hitting a monthly high, it faced rejection. Let's dive into what's driving these swings.

Profit Takers and Market Dynamics

WLD soared to $1.14 recently, but profit-taking quickly followed. Holders who'd been underwater for a while jumped at the chance to cash in. Data from Coinalyze showed a surge in Sell Volume, outpacing Buy Volume. This selling pressure pushed the price down, with WLD trading around $1.03 at the time of writing, reflecting a 3.91% dip.

Exchange flows tell a similar story. Santiment data showed Exchange Flow Balance jumping, indicating more deposits than withdrawals. This often precedes price declines, and WLD's Deposit Transactions have plummeted, reinforcing the bearish outlook.

Derivatives Market Turns Bearish

The derivatives market is also flashing warning signs. Open Interest and Derivatives Volume have both decreased, signaling reduced participation and capital inflows. Many investors are shorting Worldcoin, with the Long/Short Ratio sitting below 1, meaning more traders are betting on a price drop.

Technical Analysis: Mixed Signals

Worldcoin faced strong rejection at $1.14, causing its Relative Strength Index (RSI) to retrace. The Stochastic RSI also declined, suggesting a weakening uptrend. If sellers maintain this pace, WLD could dip to $0.96. Bulls need to step in and absorb the sell pressure to push for a recovery towards $1.1.

Ambitcoin's Bearish Outlook

Technical analysis suggests a cautious bearish scenario, with WLD around $1.10. A 3.23% daily gain was deemed speculative due to a failure to close above the $1.1634 invalidation mark. Downside targets include $0.8983, $0.7724, $0.5705, and $0.4580. A confirmed breakout above $1.1634 could shift the narrative towards $1.7299, but stronger volume support is needed.

Brave New Coin Data: Sharp Correction

Between July 11 and 12, WLD saw a sharp correction from $1.09 to around $1.04, marking a 5.00% daily decline. Heavy resistance above $1.08 led to the drop. Trading volume surged during the sell-off, and the inability to maintain support around $1.06–$1.08 increases the risk of further downside. Watch for a breach below the $1.00 level, which could expose WLD to a deeper decline into the $0.98–$0.95 zone.

TradingView Insights: Mixed Momentum

WLD is trading around $1.037, with range-bound price action. The Awesome Oscillator (AO) turned positive, suggesting mild bullish divergence. The Cumulative Volume Index (CVI) indicates sustained inflow. A breakout above $1.10 with strong volume is needed for confirmation; otherwise, a close below $1.00 would reinforce bearish continuation scenarios.

The Bottom Line

Worldcoin's recent weekly gains are being tested by profit-taking and bearish market sentiment. Keep an eye on key levels and volume to gauge its next move. Will it bounce back, or is a deeper correction on the cards?

Disclaimer: This is not financial advice. Always do your own research before investing in cryptocurrency.