22 Nov
22Nov

The price of Worldcoin (WLD) has significantly underperformed the broader crypto market, crashing over 14% in the last 24 hours (compared to a 9% market-wide decline), ending a multi-month sideways movement.

The amplified decline is driven by a convergence of negative factors:

Key Drivers of the WLD Drop:

  1. Regulatory Crackdowns: WLD faces escalating regulatory scrutiny across the globe. Most recently, Colombia ordered the immediate deletion of biometric data, following cease-and-desist orders and operational shutdowns in the Philippines and Thailand.
  2. Increased Sell Pressure: The recent unlock of over 37 million WLD tokens (valued at $25 million) injected significant supply into the market, increasing selling pressure.
  3. Bearish Market Structure: WLD is following the overall bearish trend in the crypto market, which has seen Bitcoin drop close to the $80,000 mark.

Technical Analysis: Signs of a Potential Bottom

Despite the recent crash, technical indicators suggest the bear dominance may be nearing exhaustion:

  • Consolidation Apex: The price action is currently at the apex of a three-month-long descending trendline and a consolidation pattern, typically followed by an expansionary move.
  • Liquidity Cluster: A massive cluster of more than $1.5 million in liquidity is grouped at the $0.63 price level. With lower liquidity clusters already wiped out, the price may be targeting this higher cluster, suggesting a potential short-term price pull toward a reversal.
  • Bearish Momentum Waning: While the MACD confirms selling strength and the Cumulative Volume Delta is negative (indicating shorters are dominant), the price position above a key zone and at the wedge apex hints that bulls may step in to prevent a continued drop.

In short, while fundamental pressures like global regulatory uncertainty and token unlocks have battered WLD, technical analysis suggests the token is approaching a pivotal point that could mark a short-term reversal.

November 2025, Cryptoniteuae

Comments
* The email will not be published on the website.