Worldcoin's Bearish Slide Continues Despite Recovery Efforts

Worldcoin, a cryptocurrency that has been on a bearish trajectory since mid-December, has continued to face challenges in its recovery efforts. Despite a brief bullish market structure break in early January, the cryptocurrency has since shed 34% of its value in just over three weeks. The upcoming token unlocks have further fueled bearish expectations, leading to a significant retracement in Worldcoin's price.

Worldcoin has retraced almost all the way to the 100% retracement level at $1.589. The bulls' inability to defend the $2.14 support level, which was the 78.6% Fibonacci retracement level, has indicated a potential drop toward $1.59. The selling pressure has been persistent, with the On-Balance Volume (OBV) trending downward in January and approaching the lows from November. The lack of buying volume suggests that further losses may be expected in the near future.

The next support zone to watch is $1.4, which was where a recovery began from in September 2024. The daily Relative Strength Index (RSI) has been below neutral 50 for the best part of the past six weeks, indicating a bearish trend. However, a defense of $1.6 and a reversal in the selling trend on the OBV could signal early signs of bullishness. At the time of writing, this outcome appeared unlikely.

The short-term sentiment for Worldcoin was strongly bearish, with a swift move downward on Monday, January 27th, leading to a flurry of long liquidations. This came alongside a Worldcoin retest of the $1.8-$1.85 short-term support zone. The spot CVD has been in a steady decline over the past five days, and the Open Interest has also been sliding lower alongside the price. Together, these indicators outline bearish sentiment and selling pressure.