Worldcoin Stumbles: Price Tumbles Below $4, Analysts Eye Support Levels

Worldcoin (WLD) has fallen on hard times, with its price dropping below the crucial $4 mark for the first time in weeks. This bearish trend follows a period of significant decline, raising concerns among investors.

WLD/USD Technical Analysis: Worldcoin Price Plunge

WLD attempted to enter the Ichimoku Cloud, a technical indicator for potential resistance, around the $5 level but failed to break through. This indicates strong resistance at this price point.

Last week, WLD fell below its 200-day Exponential Moving Average (EMA), a sign of a long-term downtrend. This drop was followed by a sharp 21% decline in a single day.

The price has currently stabilized around $3.69, another important historical support level. If WLD can reclaim and hold above $4.45, a past resistance level turned support, it could signal a potential mid-term bullish reversal. Conversely, falling below $3.69 could trigger further selling and push the price down to lower support levels like $2.55.

Declining User Engagement

Data shows a significant decline in active addresses on the Ethereum network interacting with WLD. From May 12th to June 9th, active addresses dropped by nearly 35%, indicating waning user interest. This aligns with the bearish price action and suggests a potential exodus of investors.

Analyst Opinions Diverge

Some analysts believe that if WLD can reclaim $4.45, it could trigger a renewed buying spree and restore investor confidence. This would likely lead to increased trading volume and positive price momentum.

Others fear that a drop below $3.69 could lead to a cascade of selling, pushing the price down to even lower support levels and intensifying the bearish sentiment.

New Head of Comms for Europe

Despite the bearish market outlook, Worldcoin has appointed Elliott Suthers, former head of communications at Coinbase, to lead their communications efforts in Europe, the Middle East, and Africa. This strategic move suggests Worldcoin’s long-term commitment to global expansion.

Overall, Worldcoin is facing a critical juncture. The price needs to hold above $3.69 to prevent further losses. Regaining $4.45 could signal a potential turnaround, while a drop below $3.69 might lead to a steeper decline.