Worldcoin (WLD) has recently been under significant sell-off pressure, as both Smart DEX traders and large whales took profits, leading to a noticeable decline in the coin’s price. After reaching a high of around $3.85, these market players sold off large amounts of WLD, triggering a drop in the coin’s value. As a result, WLD is currently hovering around the $2.40 mark, with market sentiment divided as traders take a more cautious approach. Despite this recent downturn, the $2.40 support level has shown resilience, suggesting a potential for future price recovery.

The Sell-Off by Smart DEX Traders and Whales

The recent dip in WLD’s price comes after significant profit-taking by both Smart DEX traders and whales. These traders and large holders sold their WLD positions at prices around $3.85, with the Smart DEX traders exiting at $3.80 and whales at $3.90. This large-scale sell-off indicates that many of these market participants were looking to capitalize on the recent price surge. However, after these sales, buying activity has been noticeably weak, leading to a lack of upward momentum and a more cautious outlook in the market.

The absence of significant buying pressure post-sale suggests that WLD could either face further price dips or enter a phase of consolidation at the current levels. Investors are now adopting a “wait-and-see” approach, closely watching whether the price can stabilize or begin to show signs of a recovery.

Support at $2.40: A Crucial Level for WLD

Despite the sell-off, WLD has managed to find support around the $2.40 level, which has proven to be a key price floor. Technical analysis reveals that this support zone has been tested multiple times, indicating ongoing buyer interest at this level. If this support holds firm, WLD could see a reversal in its downtrend, with potential for the price to rise once again.

The $2.40 level follows a significant price rally from earlier in 2024, where WLD surged from a low of $1.50 to a high of $4. However, after the profit-taking by whales and traders at these peak levels, the price retraced and is now hovering at the support zone. Should this level prove resilient, it could act as a base for a future price rebound.

Indicators Point to Potential Recovery

Technical indicators are showing some signs of a potential shift in momentum. The Moving Average Convergence Divergence (MACD) is reflecting a decrease in bearish momentum, with the histogram shortening in the negative territory. This suggests that downward pressure is easing, which could signal that the market is ready for a reversal if buying interest returns.

Furthermore, the profitability of WLD holders around the current price shows that many addresses are still “in the money” at $2.40, with 66.51% of addresses holding profitable positions. This could help stabilize the price, as many investors are unlikely to sell at a loss. However, resistance might emerge near the $3.85-$4 range, where a significant number of traders took profits, potentially capping any upward movement in the short term.

The Path Ahead for Worldcoin

If WLD’s price manages to stay above the $2.40 support level and sees renewed buying interest, there is potential for a price recovery, with a possible challenge of resistance around $4. A successful move above $4 could pave the way for even higher price targets, such as $6.01 and potentially $9.519 in the early months of 2025. However, the market will need to demonstrate sustained buying pressure and a shift in sentiment for this bullish scenario to unfold.

Conclusion

Worldcoin’s current position presents both risks and opportunities. The sell-off by Smart DEX traders and whales has created short-term pressure on the price, but the $2.40 support level remains crucial in determining WLD’s next move. If this support holds and buyer interest picks up, WLD could reverse its recent losses and challenge higher price levels. Traders and investors should closely monitor the $2.40 support level and overall market sentiment for signs of a potential recovery.