Worldcoin Sell-Off Intensifies, Yet Bullish Structure Holds — WLD Price at a Crossroads

Worldcoin (WLD) has seen its price slide deepen over the past 48 hours, falling more than 15% from its weekly high of $7.80 to trade near $6.20 as of Tuesday morning. Despite the intensified sell-off, a closer look at the charts reveals that the broader bullish structure remains intact, setting up a potential inflection point for the cryptocurrency tied to Sam Altman’s identity-verification project.

Support Holds as Selling Pressure Mounts

The recent decline has brought WLD back to a critical demand zone between $5.80 and $6.20. This area previously acted as resistance in early December before flipping to support. Data from TradingView shows that the price has bounced off the lower boundary of this range twice in the last week, suggesting buyers are still willing to step in at these levels.

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If this support fails, the next major floor sits near $5.00, a level that coincides with the 200-day moving average. A breakdown below that would likely signal a more significant trend reversal, potentially targeting the $4.00 psychological support.

Bullish Divergence Offers a Glimmer of Hope

One technical signal that supports the bullish case is a developing bullish divergence on the daily Relative Strength Index (RSI). While the price has made lower lows over the past three days, the RSI has printed higher lows. This pattern often precedes a trend reversal or a significant relief rally. The RSI currently sits at 42, just below the neutral 50 mark, indicating that selling momentum may be exhausting.

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On-chain data from Santiment shows that the amount of WLD held on exchanges has decreased by 2.5% over the same period, a sign that holders are moving tokens into cold storage rather than preparing to sell. This reduction in exchange supply typically reduces immediate selling pressure.

What Needs to Happen for a Rally to Resume

For the current sell-off to resolve to the upside, WLD needs to reclaim the $6.80 level as support. A daily close above this mark would invalidate the immediate bearish setup and open the path toward retesting the recent high of $7.80. A decisive break above that could see the price challenge the psychologically important $8.00 resistance.

However, the broader market context remains a risk factor. Bitcoin’s struggle to hold above the $70,000 level has created a risk-off mood across altcoins. A further drop in Bitcoin’s price could drag WLD lower regardless of its own technical structure.

Macro Headwinds and Project Fundamentals

Worldcoin’s price action is also being influenced by ongoing regulatory scrutiny. The project’s iris-scanning technology has faced bans or restrictions in several countries, including Spain and Kenya, over privacy concerns. While these developments have not directly triggered the current sell-off, they contribute to an overhang of uncertainty that can amplify downside moves during market corrections.

On the positive side, Worldcoin’s active user base has continued to grow, with the project reporting over 5 million unique verified humans as of late January. The expansion of its World App and the integration of its identity protocol with other decentralized applications provide a fundamental narrative that could support the price if market conditions improve.

Written by

Moris Nakamura

Moris Nakamura is the editor-in-chief at CryptoNewsInsights, leading editorial strategy and contributing in-depth analysis on Bitcoin markets, macroeconomic trends affecting digital assets, and institutional cryptocurrency adoption. With over ten years of experience spanning financial journalism and blockchain technology research, Moris has established himself as a trusted voice in cryptocurrency media. He began his career as a financial markets reporter in Tokyo, covering foreign exchange and commodity markets before pivoting to full-time cryptocurrency journalism during the 2017 market cycle.