- Worldcoin risks losing a key support level that has so far prevented a deeper fall.
- Certain developments could mitigate further losses.
Over the past month, Worldcoin (WLD) has been steadily declining, losing 11.70% of its value.
This downtrend continued on the daily time frame, with an additional decline of 5.74%, signaling strong bearish control and increasing the likelihood of further losses.
AMBCrypto highlights the implications of the current market trend and what could happen next for the asset.
A fall to September lows?
WLD is approaching a major support level that has already pushed its price higher several times. But this time the scenario seems to be different.
The asset recently faced a significant decline after encountering resistance at $2.398, resulting in a decline of 5.78%. At this rate, WLD could potentially rebound from the support level or fall even lower.
If the latter occurs, it would cause a further price decline of 41.88%, taking WLD back to its September low of $1.284.
Source: Commercial View
Technical indicators, including the Parabolic SAR (Stop and Reverse) and the Relative Strength Index (RSI), suggest that further price declines are likely.
Currently, the Parabolic SAR, which gauges market sentiment by forming points above (sell) or below (buy) price levels, indicates bearish sentiment with points positioned above the price, adding pressure downwards.
Source: Commercial View
Likewise, the RSI, which measures sentiment on a scale where values below 50 indicate strong selling pressure and values above 50 suggest buying interest, is at 39.49. This reading reflects strong bearish control and the fact that WLD price could fall further.
Contract closings increase
Open Interest, which measures the number of unsettled derivative contracts in the market, indicates that bearish sentiment is strengthening.
Open interest decreased by 4.52% to $286 million, suggesting that market participants are closing their positions. Additionally, a 17.97% drop in trading volume to $431 million confirms that the bears are firmly in control, increasing the likelihood of further price declines.
Source: Coinglass
Given these signals, WLD faces an increased risk of falling to its September low. However, further analysis suggests that this decline may be delayed.
Will development activities support the WLD?
Worldcoin, the project behind WLD, was recently ranked among the top projects in terms of development activity, seeing a 240% increase in the last 30 days, behind others like Arbitrum, according to Chain Broker.
Read Worldcoin (WLD) Price Prediction 2025-2026
An increase in development activities typically signals continued improvements aimed at improving the overall project experience, which often has a positive impact.
If this trend continues, it could delay the potential price decline of WLD before further downward movement.
