Worldcoin (WLD) Tanks 22%: Will It Bounce Back or Break Down?

Most of the broader market was green this week, even though Worldcoin (WLD) has lost 22% in the past 7 days. It reached a critical demand zone at $2.12 after plummeting significantly from the peak of $11.76.

WLD’s 24-hour volume declined 13% to $175.594 Million. At the time of writing, market cap was $634.98 Million, and it ranked 104th among the top 150 cryptos on CoinMarketCap.

Its market-to-volume ratio highlights good liquidity at 27.73%. This showed that the buying and selling could be done closer to its value on the exchange.

Tokenomics: 288.79 Million WLD or 2.8% of the total supply of 10.0 billion WLD are in circulation. From the price, its fully diluted value stands at $22.02 Billion.

Based on these stats, the rich list signifies that WLD has a low floating supply. Holders’ data indicated that the top 100 hold 96.78% of the circulation. On the other hand, the total number of holders stands at 25860, and the graph showcased growth in numbers.

Moreover, as per the Chainbroker, more supply would be pumped from July onwards, as the vesting graph showed an advancement up to July 2026. 

Since most of the supply happens to be locked, most of the crowd could be avoiding the crypto. The WLD chart is displaying bearishness.

What Angle Does the Derivatives Data Suggest?

As per the WLD derivatives data, the open interest was at $260.10 Million, with a decline of -1.21%. Also, its derivatives volume is down by 12.14% to $980.66 Million. As per Coinglass, the long versus short ratio for 24 hours was 0.929. 

Most of the data depicted a bearish angle, which was further enhanced by the liquidations chart. The longs were outstandingly high, and the shorts were tiny compared to those in the past 24 hours.

The short liquidation was $301.91K vs $2.08 Million for the long liquidation, which explains why going up has become challenging.

Worldcoin (WLD) Price Action Update

According to TradingView, it (WLD/USD-BINANCE) was 1200% higher than its all-time low price. The low was at $0.1503, registered on July 24th, 2023. 

Likewise, the all-time high was registered on March 9th, 2024, when the price peaked at $11.76. Comparatively, from the ATH level, the price as of press time was nearly 80% down.

The uptrend in the first quarter of 2024 was short-lived, where after the recorded peak showed instability, bears took control. The price has at the support zone, where, it once gained 400% on the daily chart. 

Despite the major level, the EMAs suggest the bearishness is here to stay. The MACD histogram is on the verge of vanishing soon. The RSI has flushed below the median line at 43.57.

Therefore, if the bearishness prevails, the bears could eye the $1.50 and $1.00 support levels respectively. However, if the price bounces back, the hurdles above could be $3.30 and $4.40, respectively.

Worldcoin (WLD) plunges 22% in a week, hitting critical support. Despite good liquidity, bearish sentiment dominates due to tokenomics, derivatives data, and technical indicators.

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