The WorldCoin (WLD) price is navigating through a tumultuous phase, highlighted by the 30-day Market Value to Realized Value (MVRV) Ratio plummeting to -14.98%, which might suggest the asset is undervalued.

Despite this, the prevailing market dynamics are prompting holders to consider selling their holdings to mitigate losses.

Currently, WorldCoin is in a challenging situation, as evidenced by the 30-day MVRV Ratio’s significant drop to -14.98%. While such a decrease typically indicates an undervaluation — often forecasting a potential price recovery — the ongoing market trends suggest a different story may unfold.

The recent sharp decline in the MVRV Ratio, coupled with a downturn in investor sentiment, is causing concern. This sentiment is further supported by a drop in daily active addresses to its lowest point since February 17, signaling reduced engagement and confidence among the WLD community.

These developments suggest a precarious position for WLD and a continuation of the current downtrend.

Moreover, the Average Directional Index (ADX) for WorldCoin witnessed a sharp rise from 11.06 on April 1 to 39.4 by April 3, indicating a significant shift in market dynamics.

The ADX serves as a tool to assess the strength of a trend, regardless of its direction. With a range from 0 to 100, readings below 20 denote a weak trend, while those above 25 indicate a strong trend. The recent spike in WLD’s ADX to 39.4 reflects not just a strong trend but a robust downward momentum, suggesting that the bearish trend is intensifying.

For traders and investors, this signifies that the current downtrend is firmly established and likely to continue, urging caution for those contemplating buying or holding WLD amidst a market inclined towards further declines.

On March 28, a ‘death cross’ occurred in WorldCoin’s Exponential Moving Averages (EMA). In this bearish indicator, a short-term EMA falls below a long-term EMA, hinting at a potential bear market ahead.

Since this event, WLD’s price has decreased by 18.72%, suggesting the beginning of a possible further decline. The widening gap between the EMA lines indicates an increasing downtrend, indicating rising selling pressure.

Read More: 5 Best Worldcoin (WLD) Wallets in 2024

Given the current market conditions and the possibility of WorldCoin’s operations being halted in more countries, WLD’s price might test the support level at $5.7. A breach below this level could lead to additional losses.

However, if the market sees a reversal and an uptrend begins, WLD could aim for a rebound toward the initial resistance at $9.47, offering a glimpse of hope for a recovery.

The post WorldCoin (WLD) Price Could Dip Below $6 appeared first on BeInCrypto.

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