As the cryptocurrency market continues to experience a downturn, Worldcoin [WLD] is facing additional challenges. The price of WLD has dropped further due to selling pressure from Alameda Research, a bankrupt hedge fund that has been consistently depositing the token to exchanges. This selling pressure has hindered Worldcoin’s ability to rally, despite attempts to break out of a downward trend.
Alameda’s Selling Pressure
Data from SpotOnChain reveals that Alameda has been depositing WLD to exchanges since August 9th, with a total of $1.13 million deposited in the last two weeks. The bankrupt firm still holds a significant amount of WLD, which is likely to be sold to repay creditors. These sales are exerting downward pressure on the price of WLD, making it difficult for the token to gain traction.
Technical Analysis
Worldcoin’s price has been moving downward within a parallel channel for several months, indicating a steady downtrend. Recent attempts to break out of this channel have been unsuccessful, suggesting that the price may continue to fluctuate within the range.
Key indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are currently signaling bearish momentum. These indicators suggest that buyers are inactive and that there is a lack of support for an uptrend.
On-Chain Indicators
On-chain data also paints a bleak picture for Worldcoin. The number of daily active addresses and new addresses has plummeted, indicating a lack of buying activity. Additionally, a large majority of WLD holders are currently in losses, which may lead to further selling pressure if the price attempts to rebound.
Market Sentiment
The decline in Worldcoin’s Open Interest, as shown by Coinglass data, suggests reduced market participation and a lack of confidence in the token’s future. This indicates that there is a high degree of uncertainty and indecision among investors.
Conclusion
Worldcoin is facing significant challenges due to selling pressure from Alameda Research, technical analysis indicators suggesting bearish momentum, and negative on-chain indicators. The combination of these factors has created a difficult environment for WLD to recover. It remains to be seen whether Worldcoin can overcome these hurdles and regain investor confidence. Sources and related content
