Worldcoin (WLD) has recently experienced a significant downturn, shedding nearly 60% of its value after an impressive rally. This sharp correction has left many investors questioning the altcoin's immediate future amidst a broader bearish market sentiment. Despite the challenging price action, underlying data suggests a potential for recovery, hinting at strategic accumulation by discerning investors.
Worldcoin's Steep Correction
Following a robust surge that saw WLD double its price, it quickly plummeted by 60%, falling from over $2.2 to $1.2. This decline, largely attributed to the prevailing bearish sentiment across the cryptocurrency market, broke crucial support levels. Technical indicators, such as the Relative Strength Index (RSI) and On-Balance Volume (OBV), dipped, signaling a shift towards a bearish trend. Initial support zones around $1.5-$1.6 were breached, leading to concerns about further price slides towards $1 or even $0.84 if key indicator levels fail to hold.
Signals of Accumulation and Potential Rebound
Paradoxically, despite the steep price drop, data reveals a surprising decline in exchange sell pressure, with "Supply on Exchanges" reaching record lows. This contrasts sharply with previous price surges where selling pressure increased. Instead, the recent dip has been met with significant accumulation, suggesting that "smart money" players are actively buying. This "buying the dip" behavior, coupled with Worldcoin's ambitious "proof of humanity" narrative gaining relevance in an AI-driven world, indicates a potential for a mid-term rally. A sustained recovery, however, remains contingent on an improvement in the broader market sentiment.
