Worldcoin (WLD) has wiped out nearly 60% of the profits gained in September amid a general pessimistic market sentiment. This volatility occurred after WLD doubled thanks to an announcement from a financial company backed by Tom Lee from Fundstrat.
Although the price has risen from $1 to over $2.20, WLD has currently decreased by 60% to $1.20 at the time of writing. In fact, this adjustment has broken important support levels as well as previous highs, and the price movement has shifted to a distinct downtrend.
When will WLD bottom out?
On the price chart, the first support level seems to be around $1.5-1.6 – a golden price range that could help reduce the correction. However, short orders have broken this level and pulled the price down below the next support at $1.4.
Technical indicators have also dropped to neutral levels at this point. In particular, the RSI has fallen below the equilibrium level, while the OBV is on the verge of breaking the September breakout level.
If the indicators hold above these key levels, a reversal could occur. Conversely, if they continue to decline, a prolonged drop to $1 and erasing all gains from September could be feasible.
If this happens, the next lows to watch will be $1.16, $1, and $0.84 – key low liquidity areas that could attract price. These levels are often reached during price swings or liquidity searches.
Should we buy the dip?
Nevertheless, selling pressure on exchanges has decreased significantly, despite the drop in recent days. Data from Santiment shows that supply on exchanges (potential selling pressure) has reached a record low of -57 million WLD.
To gain a clearer view, when WLD doubled from $1.5 to $3 by the end of 2024, selling pressure on the exchanges also doubled – from 88 million WLD to over 160 million WLD.
In contrast, the recent doubling rally was marked by strong accumulation as users seized buying opportunities when prices fell.
In other words, smart investors are buying in as prices fall and may be expecting another rally in the medium term. It would be hard to overlook Worldcoin's efforts to promote ‘proof of humanity’, especially as AI agents become increasingly popular.
The stated context and ongoing accumulation could trigger a recovery if general market sentiment improves.