WorldCoin is currently facing a difficult period, highlighted by a considerable fall in the 30-day MVRV Ratio to -14.98%. This decrease usually signals that the asset might be undervalued, which could predict a possible rebound in its price. However, prevailing market conditions hint at a different outcome.
A notable fall in the MVRV Ratio, combined with a downturn in investor morale, has raised alarms. This apprehension is reinforced by the reduction in daily active addresses, reaching its lowest level since February 17, which indicates waning involvement and trust within the WorldCoin community.
These factors indicate that WorldCoin is in a vulnerable state, likely leading to the maintenance of the current downward trend.
The ADX Index Indicates A Significant Shift In Market Dynamics
Additionally, the Average Directional Index (ADX) for WorldCoin experienced a significant surge, moving from 11.06 on the first of April to 39.4 by the third, signaling a major change in the market’s momentum.
The ADX is utilized to measure the intensity of a market trend, irrespective of its upward or downward direction. It operates on a scale from 0 to 100, where figures below 20 suggest a weak trend and those above 25 demonstrate a strong trend. The surge in WorldCoin’s ADX to 39.4 not only indicates a pronounced trend but also points to a substantial bearish movement, which makes the downtrend stronger.
This development is crucial for traders and investors, suggesting that the current bearish phase is set in place and is expected to carry on. It also serves as a cautionary signal for those considering purchasing or holding onto WorldCoin, as the market will likely display additional decreases.
Price Prediction For The WLD Token
On March 28, WorldCoin’s Exponential Moving Averages (EMA) showcased a ‘death cross,’ a technical analysis term for when a shorter-term EMA drops beneath a longer-term EMA, often forecasting an imminent bear market.
Following this technical event, the price of WLD fell by 18.72%, marking the start of what may be a continued downward trend. The expanding distance between the EMA lines further supports the notion of an accelerating decline, highlighted by increasing sell-off momentum.
Amid these market dynamics and the potential for regulatory actions against WorldCoin in additional countries, WLD’s value is poised to challenge the support threshold at $5.7. A fall below this critical point could trigger further drops.
Conversely, should the market dynamics pivot towards a positive direction, catalyzing an uptrend, WLD might target a recovery rally up to the initial resistance level of $9.47.
