Worldcoin (WLD) price has failed to enter the Ichimoku Kinko Hyo, indicating strong resistance at $5.

On Friday, the price fell below the 200 EMA and dropped 21% on the single daily chart following this price drop.

Despite the ongoing bearish trend, Worldcoin has held support

This significant price action set the tone for the subsequent bearish trend observed during the analysis period. Moreover, the price has retreated to the important resistance level of $4.45, which has acted as support in the past, corresponding to the 4-hour Ichimoku Base Line platform.

If the price successfully reclaims the $4.45 level and breaks above it, this could shift the medium-term outlook for WLD to a more positive trajectory. Conversely, a break below $3.69 could push the price down to lower support levels such as $2.55.

Worldcoin faces a massive sell-off

The subsequent weeks (June 2 and June 9) saw a significant decline, with the price falling to $4.25 and $3.81, respectively. This indicates persistent selling pressure and a lack of buying support at these levels. On May 12, the number of active addresses was 1,963, indicating high user engagement. However, this metric has steadily declined, falling to 1,267 by June 9.

Between May 12 and June 12, 2024, Worldcoin’s price plunged 34%. This highlights a period of bearish pressure. The number of active addresses has dropped by about 35.1%, falling back to levels last seen in mid-February 2024. The decline in active addresses suggests waning user interest, likely due to the price decline and broader market sentiment. The decline in active addresses is consistent with bearish price action, indicating reduced engagement and potential exits by market participants.

Strategic Recommendations

Positive Scenario: If Worldcoin’s price manages to reclaim $4.45 and break above this level, this could shift WLD’s medium-term outlook to a more positive trajectory. Such price action could attract new buyers and restore confidence among existing investors, leading to increased volume and positive momentum.

Negative scenario: Conversely, if the price breaks below $3.69, it could push the price lower to lower support levels such as $2.55. A break below this critical support level could spark further selling, increasing bearish sentiment and leading to additional downward pressure.