Worldcoin (WLD) price has seen a sharp decline, dropping 20% in the past week amid growing bearish sentiment. Further fueling concerns, the FTX estate is set to sell a large batch of locked WLD tokens at a significant discount. This could increase selling pressure and negatively impact the token’s price. Combined with technical indicators pointing toward a downtrend, WLD is facing challenges in regaining its previous market excitement.
WLD's 7-day Social Dominance Moving Average has plummeted to 0.132%, a stark contrast to the 0.60% observed on September 25. This previous high in social dominance coincided with WLD’s price surge to $2.15, marking its highest level since August 1. Social dominance reflects the percentage of attention and discussion a coin receives across social media platforms compared to other assets. The sharp decline in WLD's social presence could signal that the hype surrounding the token is fading.
The FTX estate's auction of 22.3 million locked Worldcoin tokens, valued at around $37.7 million, could seriously impact WLD’s market price by introducing downward pressure. The proposed discounts range from 40% to 75% off the current market price of $1.69. The selling is set to begin today, October 2. Offering such a large batch of tokens at a steep discount could dampen market sentiment, signaling to investors that the token is being offloaded at a lower valuation.
WLD recently experienced a golden cross in its EMA lines, where the shorter EMA crossed above the longer EMA, sparking a price increase from $1.53 to $2.18 between September 23 and September 26. However, despite this initial bullish signal, WLD has dropped 20% over the past 7 days. Now, the shorter EMA is beginning to cross down below the longer ones, indicating a shift in momentum from buyers to sellers. Combined with the FTX estate's auction of WLD tokens and the recent drop in social dominance, WLD could be entering a stronger downtrend.
WLD's next key support lies around $1.51, and if the selling pressure continues, it could fall as low as $1.28. However, if WLD manages to bounce back, it may test resistances at $1.84 or $1.98. Should these levels be broken, it could trigger a rally up to $2.47, marking its highest price since late July.
