Worldcoin, a cryptocurrency that has gained significant attention in recent weeks, has been facing a steep decline in its price. Over the past few days, the asset has plunged by more than 27%, primarily due to regulatory pressures and a decline in buying pressure. Despite this recent downturn, Worldcoin remains 1028% higher in the year to date, reflecting the volatile nature of the cryptocurrency market. Currently, Worldcoin’s total market cap stands at $210 million, ranking it as the 135th cryptocurrency by market cap. However, the total volume of the WLD token traded over the last day has crashed by more than 13%, further exacerbating the downward trend.
The decline in Worldcoin’s price can be attributed to several regulatory concerns that have surrounded the asset. In recent weeks, news of key developers leaving the project and increased regulatory scrutiny globally have put significant pressure on the price. One of the primary concerns for investors is the classification of Worldcoin as a security. With over 50 altcoins labeled as securities by the US Securities and Exchange Commission (SEC), investors have become increasingly cautious about investing in Worldcoin. Additionally, Ethereum founder Vitalik Buterin has raised concerns about the technology behind Worldcoin, citing major privacy and security issues. These concerns have triggered investigations into the project’s data privacy practices in Germany and Kenya. The Kenyan government, in particular, has suspended Worldcoin’s operations and seized machines with stored data, accusing the project of violating citizen privacy rights and processing personal data without a valid reason – a breach of Kenyan law. Similar investigations are also underway in Argentina, France, and the United Kingdom, as regulators probe Worldcoin’s data handling practices.
Given the ongoing investigations and regulatory pressures, it is expected that the Worldcoin price will continue to fall in the coming days. Data from Santiment reveals a significant drop in the number of active users adopting WLD in daily transactions over the past few weeks, underlying the declining interest in the asset. The daily chart also indicates a bearish trajectory for the Worldcoin price, as it forms a descending triangle pattern. This pattern suggests a continuation of the bearish trend in the near future. Furthermore, the Relative Strength Index (RSI) is in the oversold region, further supporting the downward trajectory. As a result, it is likely that the Worldcoin price will pull back in the subsequent sessions. The next support levels to monitor are $1.50 and $1.00, respectively. However, if the price manages to move above the bullish support level of $2.00, it could pave the way for further gains, potentially reaching the important resistance zone of $2.50.
In conclusion, Worldcoin’s price has been on a steep decline due to regulatory concerns and a decrease in buying pressure. The asset’s recent performance reflects the volatile nature of the cryptocurrency market, where significant price fluctuations are common. The regulatory scrutiny faced by Worldcoin, including investigations into data privacy practices, has heightened investor caution and contributed to the downward trend. As the investigations continue and regulatory pressures persist, it is expected that the Worldcoin price will continue to decline. However, the cryptocurrency market is known for its unpredictability, and it is always important to consider multiple factors and do thorough research before making any investment decisions.
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