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    Worldcoin price crashes 10% as AI narrative fades

    FXStreet
    Updated Feb 21, 2024 04:35
    Mitrade



    ●Worldcoin price among top sector gainers, steered by AI crypto coin narrative.


    ●WLD could drop 10% to find support at the critical Fibonacci level of 61.8% at $5.7330.


    ●The bearish thesis will be invalidated if the AI token clears the $7.9960 range high to create a new local top.



    Worldcoin (WLD) price was one of the AI tokens that benefitted the most from sector hype in February, rallying almost 270%. However, as the theme is now priced in, WLD holders appear to be booking profits en masse.



    Worldcoin price risks a 10% extended fall


    Worldcoin (WLD) price is likely to extend the fall by 10% after dropping by the same range since it faced rejection from the $7.9960 roadblock. Key levels to watch in a southbound directional bias include the most critical retracement level, the 61.8% Fibonacci at $5.7330, which stands 10% below current levels.  


    If this level fails to hold as support, the Worldcoin price could roll over to the 50% Fibonacci level of $5.0340. Nevertheless, until such a time when WLD breaks below the midline of the bullish breaker between $3.7280 and $4.2160 at $3.9820, the predominant outlook will remain bullish.


    WLD/USDT 1-day chart, Source: TradingView.



    On-chai metrics support Worldcoin bearish outlook


    Santiment’s social dominance and social volume metrics have dropped significantly, indicating that the number of mentions on social media of WLD has reduced.


    WLD Social dominance, social volume, Source: Santiment.


    Combining the dwindling attention with the spikes seen in the active deposits and exchange inflow metrics, it appears investors are ready to exit the Worldcoin market. The spikes hint at a possible rise in short-term selling pressure.


    WLD Exchange flow balance, active deposits, exchange inflows, Source: Santiment.


    On the other hand, if the bulls fasten their grip on WLD, Worldcoin price could recover all the ground lost during the Tuesday session, potentially flipping the 78.6% Fibonacci back to support. In a highly bullish case, the AI crypto coin could clear the range high of $7.9960 before creating a new local top. 


    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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