Worldcoin (WLD) Eyes a Potential Recovery as Investors’ Conviction Returns

2 months ago 36

Worldcoin’s (WLD) price has recovered less than 10% following a recent 46% decline.

While some might consider this a bearish sign, it might simply be a delayed beginning, as investor bullishness is improving.

Worldcoin Has a Long Way to Go

Worldcoin’s price has had a stroke of terrible luck throughout the last two months, which even invalidated the altcoin’s 66% rally from mid-July. Currently standing at November 2023 lows, the altcoin most likely has nowhere to go but up.

This sentiment is also being slightly exhibited by investors, who are recovering from their pessimism, as visible in the Mean Coin Age (MCA). MCA refers to the average time that coins have been held in a wallet before being spent or transferred. It provides insight into the longevity of coins in circulation and can indicate market sentiment and stability.

Generally, an uptick suggests consistent HODLing, while a downtick signals increased supply movement among addresses. After a rough few days in late July, the indicator is back to noting an uptick. This means that the conviction among WLD holders is improving as the price drop halted.

This could also lead to some investors capitalizing on the low prices and adding WLD to their holdings. The Market Value to Realized Value (MVRV) Ratio substantiates this possibility.

The MVRV ratio assesses investor profit and loss. Currently, Worldcoin’s 30-day MVRV stands at -25%, indicating losses and possible buying pressure. Historically, WLD MVRV between -10% and -21% usually signals the start of recoveries and rallies, marking it as an accumulation opportunity zone.

Thus, if investors maintain their bullishness and move to accumulate, Worldcoin’s price could recover much quicker.

WLD Price Prediction: Breaking Barriers

After registering a 63% decline throughout June and half of July, Worldcoin’s price attempted to reclaim the losses. As WLD rose by 66%, the market turned bearish, and in the span of three weeks, the altcoin fell by another 46%.

The drawdown brought the trading price to $1.70 at the time of writing, wiping away any profit from the 66% rise. However, WLD has another chance at profits, but for the same, the altcoin needs to flip $3.00 into support. This warrants a breach and flip of the $2.00 resistance level into a support floor.

However, if Worldcoin’s price fails to breach $3.00, it could be consolidated. The same thing happened back in July, and as a result, WLD could form its limits at $1.76 and $3.00. Prolonged consolidation could also invalidate the bullish thesis, suspending investors’ shot at profits.

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