Worldcoin’s Volatility Increases: Token Down 35% by Volume as Selloffs Continue

Worldcoin is trading at $1.82, with a 35% volume decrease and a drop of 6.4% in the last 24 hours. Technical analysis shows a bearish rising wedge pattern emerging. Worldcoin focuses on Asia and Latin America amidst regulatory challenges in Europe.

Alameda Research’s Continued Selloffs

With a consistent selloff of  Worldcoin tokens in Alameda Research’s wallet, AMCryptoAlex says they’ve been depositing 143,770 WLD weekly to Binance for the past two months. He is concerned about whether Alameda plans to liquidate all of its WLD holdings.

The crypto community has been watching this move, as selling pressure continues to dominate, which could affect WLD’s market performance.

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This data backs these concerns as it shows that Alameda Research currently holds 23.439 million WLD tokens worth $43.128 million. Secondly, recent transactions show constant deposits of about $264.5K in WLD to Binance weekly.

As Alameda owns a good amount of the token, their constant selloffs continue to fuel fears of key price drops as they systematically market their holdings.

Worldcoin Price Decline and Investor Concerns

WLD has shown a notable drop since October 7. The token was trading around $2.00 on October 7, but as of writing, it has fallen to $1.82 and has been down 9% in the past few days. This made sense, considering that it mirrored the broader market roll, but WLD has been suffering from selling pressure despite a neutral OI-weighted funding rate.

The chart shows that the funding rate was neutral-ish around October 7. There hasn’t been a big shift in favor of long or short. The sentiment stayed at close to 0%, indicating a balanced sentiment.

However, despite the neutral stance, spot selling or simply less demand has been responsible for more price movement instead of massive shorting in the derivatives market.

A 35% drop in derivatives trading volume. Current indicators point to waning investor interest, suggesting that Worldcoin is riding a bearish wave.

There was also a 35% decrease in derivatives trading volume. These are bearish indicators, which means Worldcoin is still experiencing a bearish wave.

Technical Analysis: Bearish Pattern Emerging

Worldcoin’s technical charts feature a dip drawing a developing rising wedge pattern, which signals a bearish signal. The pattern indicates that the token is breaking the parabolic breakout from its higher highs and higher lows as market momentum starts to weaken.

The key level to watch is the breakout level at $1.60, which serves as a critical support zone. A break below this level would confirm the bearish wedge, potentially triggering a sharp decline toward the next major psychological support level at $1.00.

Conversely, if the price surpasses the minor resistance at $2.20, this could signal a bullish move, with a potential rally toward $3.00. The next major resistance zone is around $3.30, where previous price advances have been rejected.

The Relative Strength Index (RSI), currently at 46, reflects neutral market momentum but leans toward a bearish outlook. The RSI being below 50 suggests that sellers  have the upper hand, and a further decline in this indicator would likely confirm the bearish trend.

Worldcoin: Shift in Global Focus

However, Worldcoin is beginning to shift focus from Europe as the project fights against regulation to regions with higher adoption potential, like Asia-Pacific (APAC) and Latin America (LATAM). Worldcoin is working with local platforms in countries like Malaysia and Argentina to integrate its World ID technology.

Despite its legal hurdles in Europe, including investigations over biometric data gathering, the project remains committed to engaging with regulators while expanding in other markets.