Worldcoin [WLD] saw a price bounce to $0.547 on the 17th of October but dipped to $0.478 the very next day.
The short-term volatility came alongside a 5.1% reduction in Open Interest in 24 hours, along with a WLD token price dip of 2.4%. The Spot CVD has been slipping lower over the past week, and the Funding Rate flipped negative in the past 24 hours.
This showed bearish short-term expectations and the market leaning in favor of short positions.
AMBCrypto reported that South Korean retail FOMO and the resulting short squeeze were among the factors at play that led to a price bounce toward $0.55. AI hype and the technological roadmap also helped explain the positive Worldcoin outlook.
Here’s what swing traders and long-term investors can watch out for next
Plotted from the annual low at $0.227 to the $0.727 peak, the Fixed Range Volume Profile tool showed that the Value Area High and Low were at $0.577 and $0.358, respectively.
The Point of Control (red) was at $0.50, which was also a round-number support level. Worldcoin bulls have been fighting to retain control of this area since late September, but the price has slipped just below this level.
There was another local support to watch. The $0.46-$0.47 zone has seen price wicks into it that bounced slightly higher. A price drop below $0.46 could bring a correction to $0.40 and even to the VAL at $0.358.
Traders’ call to action – Stay cautious
The $0.466 level on the 4-hour chart has been important since late September. Meanwhile, the $0.56 area overhead was a supply zone that could see a bearish reaction upon retest.
WLD has formed lower highs and equal lows in October. It was a sign that sellers were taking control of the market and could force a price drop below $0.466.
The A/D indicator was flat in recent days, while the RSI was hovering around neutral territory on the 4-hour timeframe. An H4 session close below $0.466 would flip the market structure bearishly, and traders can expect a move to $0.40 thereafter.
Final Summary
- Worldcoin has been trending higher since September, but its momentum has weakened in October.
- The $0.466 and $0.40 were the next key support levels swing traders need to keep an eye on.
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