WLD Falls Below $5 as Consolidation Continues in Search of Direction After 68% Correction. What’s Next?

Worldcoin (WLD), the crypto project aimed at distributing a form of universal basic income, has faced significant drop in recent multiple weeks. After soaring to an all-time high of $11.90 in early March according to Tradingiew MEXC chart, the digital asset experienced a 68% correction, plunging to a low of $3.70 on April 13th.

Since then, WLD has been trading within a tight ranging channel between $4.20 and $6.00, leaving investors questioning whether a breakout or further downside is imminent. According to market data, Worldcoin is currently ranked 80 by market cap, which stands at $1.1 billion as of writing.

The 24-hour trading volume is $505 million, a 46% increase in the last 24 hours and ranking it 20th in terms of trading activity. Over the last 24 hours, the token has witnessed a slight drop of 0.21% in price, currently trading at $4.91

Investor sentiment surrounding Worldcoin appears to be mixed, with bears and bulls battling. The WLD Long/Short Ratio Chart from Santiment reveals that short positions have recently outpaced long positions, indicating heavy bearish pressure in the past couple of days.

How About Key On Chain Metrics?

On-chain metrics, however, paint a more optimistic picture. Data shows an increasing trend in daily active addresses, suggesting growing interest and usage of WLD within its ecosystem. This trend can signal shifts in investor sentiment and potentially breakout of the ranging channel and  foreshadow future price appreciation in the long term.

What About Technicals? What Do They Suggest?

From a technical perspective the outlook for Worldcoin remains uncertain in short term prospects. The token's price is currently trading below both the 50-day and 100-day moving averages, indicating bearish momentum in the short to medium term. However, WLD has found support at the 200-day moving average, which could potentially halt further declines.

For a sustained breakout above the $6.00 resistance level, Worldcoin will need to demonstrate a significant uptick in development activity and introduce compelling updates to its ecosystem. On the other hand, if WLD breaks down and closes below the $4.2 support level, it could signal a further delay in the reversal of the bearish trend.

A clear picture for the near future will depend on either the breakout or breakdown in the near future. Let's Keep an eye.