5 keys to deeply understand the current fall of Worldcoin

The price of WLD is experiencing a strong bearish trend, which may be incomprehensible after the past bullish months. Furthermore, in this way and as the price reaches monthly lows, it worries its investors.

An important fact is the loss of its capitalization of 1 billion dollarsin addition to its decline to $3.09 at the time of writing.

However, in this publication we will analyze the keys and elements that could be behind this decline. We will analyze the different factors that push its price down.

Medium-term bearish trend

To begin to understand WLD’s decline we must look at the two-month downtrend in which the price traded between $6.5 and $4.2. Although after June 8 the price corrected to current levels.

WLD price is yet to overcome the corrective forces of its decline after its all-time high above $11.

The cross of massive sales

It is worth noting that one of the origins of this bearish force is the massive sell-off announcements that this token is facing, as we reported in past posts.

We are precisely referring to the X user @DefiSquared, who denounced the dangers of a sale of $200 million in WLD tokens.

It is worth noting that despite the fact that this project has an inflationary nature, some nervousness was generated around alleged irregularities and flaws in the WLD token sale system.

Furthermore, the Worldcoin Foundation explained that such sales will happen in a staggered manner to avoid liquidations and also to select merchants.

Despite all this, the price showed a sharp drop, given that total sales represent 18% of the supply in circulation.

Regulatory challenges

On the other hand, and in its objective of expanding widely, WLD is experiencing a complex scenario because some authorities view its activities with suspicion.

For example, in Hong Kong, the office of the privacy commissioner, which is the authority in charge of ensuring the integrity of citizens’ data, ordered to stop the operations of this project in said territory.

Then the price of WLD was trading above $5, however, the news sent it to lower levels where it could not recover.

Several European countries banned Worldcoin activity, as well as major economies including India and Brazil.

Other countries such as Spain and Argentina keep a close eye on this project. It is no wonder, since it is said that This platform already owns 1% of all the irises on the planet.

Without a doubt, as this project grows, it will face several regulatory obstacles of this style and will have to manage so that its expansion is not vetoed.

The fall seen from the graphs

Furthermore, we can see from the charts that the RSI is in oversold territory, which denotes the current FUD around WLD.

The price has lost at important key levels in a brutal EMA crossover that sent the 20, 50 and 100 EMAs below the 200 EMA.

Currently, the price is looking for support at $3. If this level does not hold, it could decline to lower levels such as $2.42 and $2.1.

Macroeconomic factors

Finally, let’s talk about the macroeconomic factors that drove the price of cryptocurrencies downward. Which was extremely bearish for some altcoins like WLD.

We are precisely referring to the publication of the US CPI last week, which attracted a lot of nervousness and generated strong uncertainty in the markets.

Since then, the crypto market saw sharp setbacks, although the fears were unfounded.

The most influential fact is that the Central Bank of the United States announced that there would probably only be one interest cut this year, which was not positive for the markets.

Conclusion

The WLD price drop is due to a combination of factors, including the medium-term bearish trend, announced WLD sell-offs, regulatory challenges, loss of key chart levels, and macroeconomic factors. It remains to be seen how the price of WLD will evolve in the coming months, with a high probability of the continuation of the volatile context.