Posted: December 26, 2024

• Worldcoin risks losing a key support level that has so far prevented a deeper fall.
• Certain developments could mitigate additional losses.

Over the past month, Worldcoin [WLD] has consistently declined, losing 11.70% of its value.

This downtrend has continued on the daily timeframe, with an additional 5.74% drop, signaling strong bearish control and increasing the likelihood of further losses.

AMBCrypto highlights the implications of the current market trend and what may come next for the asset.

A drop to September lows?

WLD is approaching a major support level that has previously driven its price upward on several occasions. However, this time, the scenario seems likely to differ.

The asset recently faced a significant drop after encountering resistance at $2.398, leading to a 5.78% decline. At this rate, WLD could potentially rebound off the support level or fall even lower.

If the latter occurs, it would result in an additional 41.88% price decline, bringing WLD down to its September low of $1.284.

Technical indicators, including the Parabolic SAR (Stop and Reverse) and Relative Strength Index (RSI), suggest that further price declines are likely.

Currently, the Parabolic SAR, which gauges market sentiment by forming dots above (sell) or below (buy) price levels, indicates bearish sentiment with dots positioned above the price, adding downward pressure.

Similarly, the RSI, which measures sentiment on a scale where values below 50 indicate high selling pressure and values above 50 suggest buyer interest, is at 39.49. This reading reflects strong bearish control, and that WLD’s price could drop further.

Contract closure increases

Open Interest, which measures the number of unsettled derivative contracts in the market, indicates that bearish sentiment is gaining strength.

The Open Interest has declined by 4.52% to $286 million, suggesting that market participants are closing their positions. Additionally, a 17.97% drop in trading volume to $431 million confirms that the bears are firmly in control, raising the likelihood of further price declines.

Given these signals, WLD faces an increased risk of dropping to its September low. However, further analysis suggests that this decline could be delayed.

Will development activity sustain WLD?

Worldcoin, the project behind WLD, has recently been ranked among the top projects by development activity, recording a 240% increase over the past 30 days, trailing others like Arbitrum, according to Chain Broker.

Read Worldcoin’s [WLD] Price Prediction 2025–2026

A surge in development activity typically signals ongoing improvements aimed at enhancing the overall project experience, which often has a positive impact.

If this trend continues, it could delay WLD’s potential price decline before a further downward movement.