Worldcoin (WLD), once a rising star in the cryptocurrency world, has experienced a dramatic fall from its all-time high of $11.74 to trading below $2. This decline comes amid significant sell-offs from wallets tied to the bankrupt FTX exchange and its sister company Alameda Research, raising questions about the future of Worldcoin and its native token WLD.
FTX and Alameda’s Major Sell-off of Worldcoin
Over the past two months, Alameda Research has been actively offloading Worldcoin (WLD) tokens. On-chain data shows that Alameda transferred approximately 1.56 million WLD tokens to Binance in ten batches, averaging a sale price of $1.605 per token. This aggressive selling has netted Alameda roughly $2.51 million, and reports indicate that the sell-off is part of the FTX bankruptcy estate’s plan to liquidate assets and repay customers and creditors.
Alameda’s WLD holdings are far from exhausted. Despite these substantial sales, 23.44 million WLD tokens—valued at about $43 million—remain in Alameda’s wallet, ready to be sold off over the next few years. According to blockchain intelligence firm SpotOnChain, if the current pace of bi-weekly deposits continues, it could take around three years to fully liquidate Alameda’s remaining WLD holdings.
WLD Price Struggles Amid Sell Pressure
The relentless selling from FTX and Alameda has contributed to WLD’s price slump. After briefly regaining the $2 support level on October 7, 2024, WLD soon dropped back below it, marking a 6.2% decline within 24 hours. As of this writing, WLD is trading at $1.88, still up 10% over the past week and 30.7% over the last month. However, the token remains down 84% from its all-time high.
Worldcoin has re-entered the Top 100 cryptocurrencies by market cap, but its journey forward is fraught with challenges. For WLD to recover, it would need to break through critical resistance levels. According to data from IntoTheBlock, the next key resistance zone lies at $2.52, and overcoming this barrier could pave the way for further gains, possibly pushing WLD towards $3.37. However, this upward movement will depend heavily on current holders maintaining their positions and resisting the temptation to sell.
What’s Next for Worldcoin?
Worldcoin’s recovery hinges not just on market dynamics but also on its ability to sustain real-world utility. The project, developed by Tools For Humanity, uses a patented iris-scanning technology designed to establish a decentralized digital identity. This groundbreaking technology has sparked significant interest, but it also faces legal challenges in multiple countries due to concerns over data privacy and biometric regulation.
These legal issues could lead to increased sell pressure on WLD, as regulatory scrutiny may deter potential investors and current holders. If the legal situation worsens, the token’s price could face further downward pressure, making it more difficult for Worldcoin to regain lost ground.
Resistance and Support Levels: Can Worldcoin Bounce Back?
For WLD to stage a meaningful recovery, analysts highlight that it must break through several layers of resistance. The most immediate hurdle lies at $2.18, a critical level that could spark momentum for a rally toward $2.52. Beyond that, the resistance bubble containing 22.98 million WLD tokens presents a significant challenge for WLD to push past $3.37.
However, 75% of WLD holders are currently holding their positions at a loss, making them more likely to sell if the price nears these resistance levels. Worldcoin’s ability to maintain its current price range—or even rise—will depend on whether these holders choose to stay the course or sell their tokens.
On the Flipside: Legal Challenges Loom Large
Worldcoin’s technological advancements in iris biometric verification have drawn praise for their innovation, but they’ve also attracted legal scrutiny. Countries across the globe are concerned about the project’s data privacy implications, and the lack of clear regulation around biometric technologies is becoming a growing issue.
If Worldcoin is unable to resolve these legal concerns, the negative sentiment could further weigh down the project, creating additional selling pressure on WLD. This could hinder the token’s recovery, especially if the legal landscape becomes more restrictive.
Conclusion: A Critical Juncture for Worldcoin
Worldcoin is at a crossroads. On one hand, it has real-world utility and innovative technology that could drive its future growth. On the other, its price is under immense pressure due to massive sell-offs by FTX and Alameda, along with looming legal challenges.
For WLD to regain its footing, it must break through key resistance levels and navigate the ongoing liquidation of Alameda’s holdings. Investors and holders alike will need to keep a close watch on market movements, regulatory developments, and Worldcoin’s ability to sustain its technological edge. Whether the token can return to its previous highs remains uncertain, but its journey will undoubtedly be one to watch.
