Worldcoin [WLD] had been trending higher over the past week but was forced into a steep retracement over the past three days. The $1.5 billion market cap altcoin slid 28.68% in the past 36 hours.
However, unlike Bitcoin [BTC] or Ethereum [ETH], the altcoin had a bullish swing structure on the 1-day chart. In May, it sank below the late-March swing low at $0.243 (orange).
Since then, the lower high at $0.329 (green) has been breached, shifting the structure bullishly.
The rally extended up to $0.63 and was undergoing a retracement. However, the wider crypto sentiment and performance have left WLD holders doubtful. Will the altcoin resume its uptrend after the current retracement?
A wave of profit-taking has disrupted WLD’s rally
Apart from the Bitcoin selloff in recent days, there was another factor behind the altcoin’s price slump. Worldcoin holders have also been taking profits.
The 30-day and 180-day MVRV ratios were compared. Santiment data showed that the short-term and medium-term holders were increasingly profitable in the past two weeks as WLD gains kept coming.
Profit-taking does not immediately imply seller domination. It is part of a healthy market. The 30-day MVRV was still positive, showing the pullback could go further without triggering panic selling from short-term holders.
Both the 30 and 180-day MVRV ratios reached values not seen since September 2025. The extremely elevated levels of medium-term holder profits were a greater threat to WLD’s bullish trend.
The October market crash sent WLD reeling, and crypto market despair might repeat the same scenario in the coming weeks. Hence, traders should be aware of the key swing levels, which, if broken, would signal that another downtrend has begun.
Traders’ call to action – Buy
The 1-day structure was bullish, the 4-hour structure was also bullish, and a key Fibonacci level on this timeframe (cyan) at $0.43 has been tested. It has held up in recent hours of trading.
A drop below $0.376 would invalidate this buy idea, but not the higher timeframe uptrend. For that to be disproved, a daily session close below $0.275 is necessary.
Final Summary
- Worldcoin holders witnessed sizeable profits due to the recent rally, helping explain the short-term losses as part of a retracement.
- The price structure was still bullish across timeframes and presented a valid bullish setup with clear invalidations.