Worldcoin [WLD] has traded within a strong downtrend since it fell below $1. In fact, the altcoin has closed at lower lows since January, reflecting strong bearish pressure.
Worldcoin extended its bearish streak, breaching the $0.3 support and dropping to a 6-month low of $0.2701. At press time, WLD traded at $0.282, down 9.03% on the daily charts.
Over the same period, the altcoin’s market cap dropped from $1 billion to $876 million, indicating massive capital outflows. Following this market slip, liquidation levels soared with over $4.26 million in long positions liquidated, further stretching the downtrend.
Amid this market weakness, the Worldcoin team has moved significant funds into exchanges.
WLD team moves 89.65M tokens
Onchain Lens reported that the WorldCoin Team sent 89.65 million WLD, worth $26.17 million, to a new wallet. After the transfer, the team later began sending funds to multiple centralized exchanges (CEXs).
When a team’s wallet makes such transfers, it could mean two important things. Firstly, moving funds to exchanges could mean that tokens are being prepared for sale.
Usually, this move is inflationary, causing short-term bearish pressure and leading to a price decline. However, sometimes teams move funds to exchanges to provide liquidity, supporting market stability by avoiding higher slippage.
Although less bearish, it could also create downside pressure if the demand is weak. Combined, either move could result in bearish pressure, leading to lower prices.
WLD faces strong bearish pressure
In addition to the team’s token transfers, Worldcoin has faced significant pressure from other market participants.
On the spot side, sellers have largely dominated the market, as evidenced by Buy Sell Volume on Binance. A the time of writing, Sell Volume rose to 94 million, while Buy Volume dropped to 76 million as of writing, with net market delta holding at -152 million.
The same market behavior was observed on the Futures side. According to CoinGlass data, Futures Inflow dropped to $101 million while outflows jumped to $120.3 million.
As a result, Futures Netflow dropped 277% to -$18.98 million, a clear sign of aggressive exits in the futures market. Such market conditions suggest increased risk-off sentiment with traders reducing exposure.
More losses ahead for WLD?
Worldcoin has faced significant downside pressure, and the latest team’s token transfer exacerbated the downtrend.
At press time, the altcoin’s Relative Strength Index (RSI) dropped deeper into the bearish zone and was nearing an bearish crossover. Often, when this momentum indicator drops to such levels, it suggests that sellers have outpaced buyers.
Traditionally, a drop into oversold territory has preceded lower prices. In fact, the Future Grand Trend indicator indicated a continued market decline, with a likelihood of dropping below the $0.2 support.
For a potential trend reversal, WLD needs to reclaim the $0.3 resistance and flip it into support.
Final Summary
- Worldcoin team moves 89.65 million WLD, worth $26.17 million, to multiple exchanges.
- WLD declined 9.03%, breaching the $0.3 support to a 6-month low of $0.27.
