Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

• Worldcoin price is down 23% since the Monday peak of $7.9960.
• WLD could extend the fall 9% to the key Fibonacci retracement level, 61.8% at $5.7330.
• Invalidation of the bearish thesis will occur if the AI token clears the range high to create a new local top.

Worldcoin (WLD) price recorded a striking rise between February 5 and 19, recording a new all-time high since its debut in the market in August last year. The latest surge comes on the back of the AI crypto narrative, but as this theme fades, the ‘buy the rumor sell the news’ situation continues to play out for the AI token.

Also Read: Worldcoin price crashes 10% as AI narrative fades

Worldcoin price extends fall

After a 10% dip on Tuesday, Worldcoin price continues to extend the fall, and could likely retrace the most important Fibonacci level of 61.8% at $5.7330, 9% below current levels. In a dire case, the load-shedding exercise could send WLD price to the 50% Fibonacci retracement level.

For the predominant bullish outlook to be invalidated, however, the Worldcoin price must extend the fall to breach the supply zone turned bullish breaker between $3.7280 and $4.2160. Confirmation will be seen in a decisive candlestick close below the midline of the order block at $3.9760.

The Relative Strength Index (RSI) is almost executing a sell signal, which would be confirmed once the RSI crosses below its signal line (yellow band). In the same way, the Moving Average Convergence Divergence (MACD) histogram bars are losing their green shade, accentuating the bearish supposition.

WLD/USDT 1-day chart

On the other hand, if the bulls increase their buying pressure, the Worldcoin price could push north, potentially recovering all the ground lost during the Tuesday and Wednesday sessions, 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.