Worldcoin plummets below $0.40 as a whale moves 14.19 million WLD

In the context of the broad market correction in cryptocurrencies, Worldcoin (WLD) has failed to hold the $0.40 support level, dropping to $0.38 after being rejected at the $0.43 resistance level. Currently, WLD is trading at $0.396, reflecting a 1.83% decrease on the daily chart.

Short-term bearish trend confirmed

Following this decline, WLD has fallen below the short-term moving average (EMA20), indicating a short-term downtrend. This suggests market sentiment is leaning toward selling, exerting significant pressure on the coin’s value.

Whales sell off 14.19 million WLD, increasing selling pressure

The weakening of WLD below the $0.40 mark has prompted some large investors, especially whales, to reduce risk by selling off. According to data from Arkham, an address linked to Justin Bram received 9.37 million WLD, worth approximately $3.79 million, from the WorldCoin Vesting Wallet.

Source: Arkham Notably, this is the first time this wallet has received tokens in over two months, when it received more than 8 million WLD. Shortly afterward, the wallet transferred 14.19 million WLD, equivalent to $5.72 million, to Binance for sale. After this transaction, the whale still holds 4.82 million WLD worth $1.94 million in its wallet.

The rapid sell-off with large volume indicates a lack of confidence in the market. Typically, large investor sell-offs create greater downward pressure and can trigger small investors to sell as well.

In fact, the exchange flow balance for WLD surged from -98k to 14.18 million WLD on February 17. This sudden increase reflects that most traders are leaning toward selling.

Sharp decline in scarcity, pushing prices lower

The increased sell-off activity has significantly reduced WLD’s market scarcity. The stock-to-flow ratio of the coin has dropped from 171k a week ago to just 2.4k.

Source: Santiment This decline indicates that the amount of WLD available for immediate sale has risen sharply. When supply increases, downward pressure typically intensifies, paving the way for further weakening of the asset’s value.

WLD price outlook: Downward pressure remains strong

Worldcoin faces strong bearish momentum and a weak market structure due to continuous selling pressure. Sellers are currently dominant, preventing buying activity from absorbing the downward force.

The Stochastic RSI indicator for WLD has crossed downward, falling from 92 to 75, further confirming the current bearish trend. Additionally, WLD is trading below key moving averages, reinforcing the market’s weakening structure.

Source: TradingView With selling pressure still not easing, WLD risks continuing to decline toward the $0.35 support level. To reverse the trend and regain bullish momentum, WLD needs to break above the EMA20 at $0.41 and the EMA50 at $0.46. Until then, Worldcoin may face a prolonged period of weakness.