Worldcoin drops 14%: Impact of regulatory crackdowns on WLD

Worldcoin (WLD) just saw a sharp drop of more than 14% in the past 24 hours, making it an outlier compared to the broader cryptocurrency market’s decline of about 9%.

This altcoin is still struggling in a months-long sideways trend since its initial surge from the $0.60 level. Although WLD’s price often reflects the overall market sentiment, a series of external factors have accelerated its decline, including political tensions, token unlocks, and pressure from a bearish market structure.

Why is WLD falling today?

First, Worldcoin (WLD) is facing a wave of regulatory crackdowns globally, with Colombia becoming the latest country to request a suspension of all project services. The government has ordered the immediate deletion of all biometric data collected from citizens, causing a major shock to the WLD ecosystem.

Not only that, but the Philippines and Thailand have also issued cease and desist orders, forcing Worldcoin to suspend all operations, directly impacting users and previous airdrop recipients. Previously, airdrops were a powerful tool to attract community participation, but now the chain operates in a highly challenging environment.

Selling pressure has also increased as more than 37 million WLD tokens, worth over $25 million, were just unlocked. At this point, about 42% of the total tokens remain locked, equivalent to 4.25 billion WLD, which could lead to further volatility.

NguSource: Tokenomist Finally, Worldcoin cannot escape the broader downtrend in the cryptocurrency market. Most major coins are declining, with Bitcoin (BTC) only a few thousand dollars away from the $80,000 mark, creating a challenging backdrop for WLD.

Will bears continue to dominate bulls?

On the chart, WLD is still trading below the downtrend line for the past three months, reinforcing the bearish outlook for this coin. Before the downtrend formed, WLD moved within a stable price range from April to September.

The MACD indicator confirms that selling pressure is prevailing, though not yet strong enough to push the price below $0.60. At the same time, a negative Cumulative Volume Delta of $10.71 million indicates that most trading volume comes from short selling.

NguSource: TradingView However, the current situation shows that WLD is on the verge of breaking out of its sideways pattern as the price has reached the top. According to market principles, after a period of contraction, there is usually an expansion, but the next direction is still unclear.

The liquidity map reveals over $1.5 million concentrated around the $0.63 level, while low-liquidity zones have been cleared, paving the way for a potential rally to higher liquidity areas. Liquidity above $0.63 is still forming and could become a key driving force, signaling a possible WLD reversal.

NguSource: CoinGlass Overall, with the current price standing above a critical area and touching the top of the wedge pattern, Worldcoin shows signs of ending its decline, raising hopes that bulls will soon return to the market.

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