●Worldcoin's AI-driven rally shows signs of exhaustion after 270% February surge
●Critical Fibonacci support at $5.7330 becomes make-or-break level for WLD
●On-chain metrics reveal declining social engagement and increasing exchange inflows
The cryptocurrency market witnessed Worldcoin (WLD) emerge as one of February's standout performers, riding the wave of artificial intelligence enthusiasm that swept through digital asset markets. However, recent price action suggests the AI narrative may be losing its momentum as WLD experiences significant selling pressure.
Technical Outlook Points to Potential Further Declines
Market analysts observe that Worldcoin price faces immediate technical challenges after failing to sustain momentum above key resistance levels. The rejection at $7.9960 has triggered a cascade of selling activity, with the next significant support zone appearing at the 61.8% Fibonacci retracement level of $5.7330. This represents approximately 10% downside from current trading levels.
Should this Fibonacci support fail to hold, technical traders anticipate potential movement toward the 50% retracement level near $5.0340. The broader bullish structure remains intact as long as WLD maintains above the $3.9820 level, which represents the midpoint of a previously established accumulation zone.
Social Metrics Reflect Waning Enthusiasm
Blockchain analytics reveal concerning trends in social engagement metrics for Worldcoin. Both social dominance and social volume indicators have shown substantial declines, suggesting reduced discussion and interest across cryptocurrency communities. This cooling of social sentiment often precedes or accompanies price corrections in digital assets.
Concurrently, network activity metrics show increased token movements to exchanges, typically interpreted as preparation for selling. The combination of reduced social buzz and growing exchange deposits creates a challenging environment for WLD's price stability in the near term.
Potential Scenarios for Worldcoin's Next Move
Market participants should monitor two critical scenarios for WLD's price trajectory. In bearish circumstances, failure to hold the $5.7330 support could trigger additional downside toward the $5.0340 level. Conversely, a bullish resurgence would require reclaiming the 78.6% Fibonacci level as support, with potential for testing the $7.9960 resistance if buying pressure intensifies.
The coming days will prove crucial for determining whether Worldcoin can reignite its AI-driven momentum or if the current correction represents the beginning of a more substantial pullback following its impressive February performance.