Worldcoin (WLD) has been under significant bearish pressure, recently dipping to its lowest point in 11 months. The broader market sentiment remains pessimistic, leading to questions about whether the bulls can turn the tide for WLD. Despite a slight increase in trading volume and Open Interest, the coin’s long-term trend has been firmly downward, with key support levels being breached. As of the time of writing, WLD was trading around $1.63, showing a 10% increase in the last 24 hours.

Bearish Trends Persist

Worldcoin’s recent performance has been marked by a consistent decline, which has put the cryptocurrency below all its major Exponential Moving Averages (EMAs). The 20-day EMA stands at $1.67, the 50-day EMA at $2.08, and the 200-day EMA at $3.42. These levels now represent significant resistance points that WLD must overcome if it is to stage a recovery.

The price action suggests that WLD is struggling to break above the 20-day EMA, a critical level for any potential bounce back. The downward-sloping EMAs indicate that sellers maintain control, and any attempt by the bulls to push the price higher could encounter stiff resistance. For the bulls to assert dominance, WLD must close above the 20-day EMA and hold this level to gain momentum.

Market Sentiment and Key Indicators

The recent uptick in trading volume and Open Interest has provided a glimmer of hope for a short-term recovery. However, the overall market sentiment remains bearish. The Relative Strength Index (RSI), a key indicator of market momentum, hovered below the 50-mark, signaling a slight bearish edge. Buyers looking for a reversal should watch for the RSI to move above equilibrium, which could indicate a shift in momentum.

The Crypto Fear & Greed Index, which measures market sentiment, also reflected a bearish outlook at the time of writing. This negative sentiment has contributed to the ongoing downtrend, making it challenging for WLD to gain any significant traction.

Critical Levels to Watch

For WLD to mount a recovery, it must first overcome the immediate resistance at the 20-day EMA ($1.67). Should WLD break and hold above this level, the next targets would be the 50-day EMA at $2.08, followed by a potential test of the 200-day EMA level at $3.42. These resistance levels are crucial for WLD’s recovery, as breaking through them would signify a reversal of the current downtrend.

On the downside, support at $1.41 is critical. A break below this level could lead to a more significant correction, with the next support level around $0.95. Such a decline would likely reinforce the bearish trend and could prompt further selling pressure.

Trading Volume and Market Interest

Interestingly, despite the bearish sentiment, the trading volume for WLD increased by 60.25% to $528.67 million, while Open Interest also rose by 12.52% to $144.08 million. This uptick suggests growing interest in WLD, but it’s unclear whether this interest is driven by buyers looking for a recovery or sellers anticipating further declines.

The long/short ratio for WLD over the last 24 hours was almost balanced at 1.0068, indicating a neutral sentiment among traders. However, on Binance, the WLD/USDT long/short ratio was notably bullish at 2.7341, showing that a significant number of traders are betting on a potential recovery.

External Factors to Consider

While technical indicators and trading volumes are essential, external factors such as macroeconomic trends and Bitcoin’s overall sentiment will likely play a crucial role in determining WLD’s near-term price action. As the broader cryptocurrency market remains volatile, these external influences could either bolster WLD’s recovery efforts or exacerbate its current downtrend.