Worldcoin recent bounce paused after it suffered from the 50 day EMA. At the time of writing, Worldcoin was hovering near the $2.59, losing nearly 12% in the last two sessions.
Despite the recent drop in price, Worldcoin boasts a weekly gain of nearly 44%. WLD price is at a crucial zone from where bulls and bears both have equal opportunity to dominate the trend.
However, the price is below the 200 day EMA suggesting a bearish trend is prevailing in the long term.
The Worldcoin system centers on World ID, a global identity network that aims to enhance and protect privacy. World ID allows users to verify that they are humans online (“Proof of Personhood”) while safeguarding their privacy with zero-knowledge proofs. At press time, WLD market capitalization was $731.92 million.
User Engagement in Worldcoin Drops
The recent surge helped worldcoin recover recent losses. WLD is hovering merely 8% lower than the monthly highs. Despite the recent surge, 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.
The price paused near the 50 day EMA after gaining 44% over the week. The price is hovering below the 200-day EMA, indicating a long-term bearish trend. Active addresses dropped by 50%, suggesting lower user engagement.
Recently, WLD price took a rebound $1.63 however seemed to be struggling near the 50-day EMA. Now, If it surpasses $3.8, a bullish reversal towards the $5 is possible. otherwise, it may fall to $1.6. The Fibonacci golden zone is between $3.3 and $3.8, with the current price near the 0.38 level.
