Worldcoin Price Nearing Fibonacci Golden Zone After Suffering a 12% Drop, Despite a 44% Weekly Gain

The WLD/USD chart highlights a bounce from the recent demand zone of $1.63. However, the long term bearish trend adds a risk of another selloff

Worldcoin (WLD) recent bounce from the lower levels seems to be pausing as the price faced resistance at the 50 day EMA. At the time of writing, Worldcoin was trading near the $2.59, losing nearly 12% in the last two sessions.

However, the recent drop brought in a crucial level on the chart from where both bulls and bears have an equal opportunity to dominate the trend. Notably, the price is below the 200 day EMA which suggests that a bearish trend is prevailing in the long term.

Worldcoin System: World ID

The Worldcoin system centers on World ID, a global identity network that aims to enhance and protect privacy. It allows users to prove that they are humans online (“Proof of Personhood”) while maintaining their privacy with zero-knowledge proofs.

At press time, WLD market capitalization was $731.92 million. Now, the recent surge helped worldcoin recover recent losses however it is still trading merely 8% lower than the monthly highs. However, the bulls do not look confident for a bullish reversal as the price still maintains a bearish long term outlook which enhances the risk of a selloff.

Moreover, as per the data obtained from an on-chain analytics website app.santiment.net, there has been a drop in the 24 hour active addresses in the last couple of sessions. Active addresses reflect the unique number of users that take part in a transaction.

The 24 hour active addresses have dropped from 880 to 450, suggesting a nearly 50% drop. The decreasing number of active addresses points to fading user engagement.

Worldcoin Price Nearing Fibonacci Golden Zone

The WLD/USD chart highlights a bounce from the recent demand zone of $1.63. However, the long term bearish trend adds a risk of another selloff at the higher levels. WLD surpassed the 20 day EMA and is struggling near the 50 day EMA.

While connecting Fibonacci from swing high at $5.13 to the swing low at $1.65, the golden zone of Fibonacci appeared between $3.3 to $3.8. WLD price is hovering near the 0.38 level of Fibonacci.

Now, on the higher side, if the bulls surpass the $3.8 level, it may validate a bullish reversal and the price could rise to $5. If the price suffers a rejection near the $3.5 level, it may slump towards the $1.6 level indicating a bearish continuation.

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