Worldcoin Causes Market Concern After $25.6 Million WLD Transfer: Will It Hold at $0.55?

Worldcoin has been experiencing a challenging period as it trades within a multi-month downward trend. The recent transfer of $25.6 million worth of WLD tokens has heightened market anxiety. As the altcoin remains under significant selling pressure, investors are left wondering if it can maintain its support at $0.55.

Key Takeaways

Worldcoin (WLD) recently dropped 7.2% on weekly charts and is trading at $0.58 after a slight rise.
The team transferred 44 million WLD tokens worth $25.6 million to team-related addresses.
Historical moves have indicated possible outflows to exchanges, increasing market pressure.
Current market dynamics show dominant selling activity, with a higher sell volume compared to buy volume.
The altcoin is at risk of breaking below the $0.55 support level if current trends continue.

Worldcoin’s Recent Token Transfer

Worldcoin’s main team unexpectedly transferred 44 million WLD tokens, valued at $25.6 million, to two team-associated addresses, as reported by Etherscan. One address received 24 million WLD tokens while the other received 20 million.

Worldcoin transfers

This transfer raises concerns as tokens from these addresses have historically been sent to exchanges, potentially leading to market destabilization. A similar transfer last month saw 40 million tokens sent to exchanges, contributing to a further decline in WLD's price down to $0.56.

Selling Pressure Intensifies

Worldcoin is now facing intense selling pressure, creating a climate where holders and investors are losing faith in the coin's value. Data from CryptoQuant highlighted a turn in the Spot Taker Cumulative Volume Delta (CVD), which fell back into negative territory after showing signs of recovery for two consecutive days.

Worldcoin Spot Taker CVD (Cumulative Volume Delta, 90-day)

This indicates a dominant seller presence in the market, pushing aside buyers and contributing to aggressive selling activity. Recent trading also showed a Sell Volume of 10.65 million compared to a Buy Volume of 9.8 million, with a negative Buy Sell Delta of -0.85 million.

wld_buy_vs_sell_volume_spot

Signs Pointing Toward Further Decline

According to AMBCrypto, the downward trend for Worldcoin is strong, with sellers consistently dominating trading activities. The Stochastic Momentum Index has also moved deeper into negative territory, indicating powerful downward momentum, currently sitting at -37.

Worldcoin SMI & EMA

If the transferred tokens do make it to exchanges, WLD faces the risk of breaching the critical support level of $0.55 and may fall to $0.50. To counter this bearish path, the altcoin would need to reclaim $0.60, allowing it to target a higher resistance at $0.635.

Conclusion

The current landscape for Worldcoin presents both challenges and opportunities. With the recent transfer of a significant amount of tokens, the market remains highly volatile, and investors should monitor key price levels closely.