- Worldcoin continues to fall as OpenAI’s recent $6.6 billion raise fails to boost prices.
- The decline has resulted in losses for portfolios increasing to 84%.
World currency [WLD] The price remained subdued on Thursday, October 3, as it reflected the performance of Bitcoin [BTC] and others altcoins. At the time of writing, WLD was trading at $1.56 after a 9% price drop in 24 hours. In the last seven days, Worldcoin is down 25%.
Worldcoin’s recent price drop comes despite OpenAI Raised $6.6 billion in new financing at a valuation of $157 billion.
WLD tends to respond to developments around OpenAI, as the project is backed by Sam Altman, CEO of OpenAI. However, the currency has failed to respond to this recent rise and has instead fallen to a weekly low as the bears tighten their grip on the price.
Worldcoin’s short-term trend is turning bearish
Worldcoin has fallen below the 50-day Simple Moving Average (SMA) on the one-day chart, confirming that the short-term trend has turned bearish. The decline occurred after the coin failed to defend a crucial support level at $1.59.
Source: Tradingview
The Moving Average Convergence Divergence (MACD) line confirms this bullish hypothesis as it has crossed below the signal line. At the same time, the MACD histogram bars have turned red, indicating that downside pressure is increasing.
If this decline fails to attract dip buyers and the WLD continues to trend down, the next support level to test is the 1.618 Fibonacci level ($1.15).
Conversely, if the broader market recovers and WLD rises, the next likely resistance is $1.59, which will turn short-term momentum into bullish. Another key resistance level is also at the 0.618 Fib level ($1.78).
Loss on Worldcoin wallets rises to 84%
Data from InTheBlok shows that the recent price drop has led to an increase in the number of Worldcoin addresses making losses.
Over the last seven days, WLD addresses that are In The Money (in gain) have increased from 19,300 addresses, representing 68% of holders, to 24,100 addresses, representing 84% of holders.
Source: IntoTheBlock
On the other hand, profit portfolios have fallen significantly from 23% to 6%. As more traders suffer losses, they may choose to sell to minimize risk. If this happens, it will increase downward pressure on Worldcoin.
Derivatives data shows THIS
The derivatives market further reinforces the bearish situation against Worldcoin. According to Mint glassOpen interest has fallen 9% in the past 24 hours, indicating traders are closing their positions.
This bearish outlook could be caused by an influx of liquidations. At the time of writing, WLD liquidations totaled $2.47 million. Of this amount, $2.15 million consisted of long-term liquidations.
Source: Coinglass
The long/short ratio was also 0.925 at the time of writing, indicating a relatively neutral market.
Read Worldcoins [WLD] Price forecast 2024–2025
However, this data shows that the short positions were slightly larger than the long positions, indicating that traders are bearish on WLD’s price performance.
Nevertheless, Worldcoin is not the only AI-related crypto making losses. At the time of writing, the total market cap for AI cryptos had fallen by almost 6% to $26 billion per Coin gecko. This could also have led to WLD’s subdued performance.
