After rallying to a new local high of $0.715, Worldcoin [$WLD] retraced back to $0.5912 at press time. This seemed more like profit-taking rather than selling pressure.
Once momentum stalled near that high, sellers stepped in with momentum, pushing the price below $0.70. As a result, the AI token shed 14%, creating a short-term trend. However, the bulls tried to defend the $0.65–$0.655 support zone that had previously served as a resistance zone.
Despite the attempts, bears continued breaching the support, as visible wicks indicated persistent supply. The efforts eventually became successful with the support being breached as the price declined gradually toward $0.6067 as it entered an accumulation.
Source:
$WLD/USD on TradingView
Later on, $WLD bulls regained some control, pushing the token upward to $0.6222, resulting in a 3.15% rebound. Even so, RSI remained near 52.4 showing balanced momentum rather than capitulation.
Yet, buyers must reclaim $0.6313 to challenge the current downtrend toward reclaiming the $0.70 zone. However, failure to do that could lead sellers to retest $0.6067 and expose $0.5912 as the next support.
Conviction weakens after the decline
As $WLD retraced from its swing high, CoinGlass data shows liquidation imbalance. In the last 24 hours $2.17 million was liquidated, with longs getting the larger share of $1.10 million while shorts accounted for $1.08 million. This implied that the recent volatility challenged both sides of the market evenly without bias. Earlier on, short liquidations helped fuel upside momentum as $WLD advanced toward $0.7234.
Moments later, bullish traders also began losing positions as $WLD’s price declined. This resulted in reduced speculative enthusiasm.
Source: CoinGlass
Open Interest (OI) surged drastically as the rally unwound toward a high of $0.7234. The metric rose from around $150 million to over $550 million as new speculative activity was introduced to the market with rising prices.
As this speculative frenzy began to decline around the 17th of June, the high of the rally, the price retreated down to $0.62, and OI was down to around $450-$480 million. This was not due to an increase in trader commitment or an appetite to push more money out into the market, but rather traders closing out their open positions and reducing their risk exposure.
Therefore, $WLD’s next move will likely depend on whether fresh positioning returns alongside renewed buying pressure.
Final Summary
- Worldcoin is still holding above key support levels, but buyers have yet to take full control as participation is waning.
- Leverage continues to unwind in $WLD, and fresh demand is critical for any move back towards recent highs.
