Worldcoin (WLD) surged 25% in the last week, fueled by the success of its World ID project, which has expanded to over 40 countries. However, this rally hit a major roadblock when WLD reached a resistance level of $2.48, a level it hadn’t been able to break for three months. Following this, Worldcoin saw a 17% drop in the past 24 hours, currently trading at $2.21.
Profit-taking may Lead to a Price Drop
As Bitcoin’s price surged to a new all-time high, other altcoins followed suit, and Worldcoin was no exception. The altcoin saw impressive gains last week, rising to $2.88, with its trading volume jumping 78% to $2.38 billion.
However, this surge didn’t last long as after reaching a three-month resistance level, Worldcoin began to decline, quickly erasing much of its recent gains.
Meanwhile, a key factor behind this drop is that 97% of all Worldcoin holdings are now in profit. This often signals a potential market top, as many investors may choose to sell and lock in their gains. Historically, when most of a cryptocurrency’s supply is profitable, it can trigger a pullback in the price.
Selling Pressure Builds Up
Another reason for the decline is that over 25% of Worldcoin’s active addresses are in profit. This level often encourages holders to sell, adding to the selling pressure. With more people potentially cashing out, the upward momentum may be losing steam.
Worldcoin’s Growing Global Presence
Worldcoin, co-founded by Sam Altman, has been making waves globally, with recent launches in Costa Rica, Poland, and Austria expanding its reach. Altman recently celebrated Worldcoin’s success, revealing that over 16 million users have now been verified.
Despite facing some regulatory challenges in countries like Spain, Germany, and South Korea, the project continues to grow.
As the platform gains popularity, its native token, WLD, is attracting both individual and institutional investors. In a tweet, Altman shared his positive outlook, saying he feels good about the bright future of cryptocurrency in general.
What Next For WLD?
Worldcoin is now facing resistance at $2.48, and if the price continues to struggle, the next support levels to watch are $2.00, and $1.74. If the price manages to hold at $2, it could bounce back and attempt another break above $2.48. If that happens, Worldcoin may be back on track for more gains.
As of now, WLD is trading around $2.23 reflecting a drop of almost 18% seen in the last 24 hours with a market cap of $1.42 billion.
