Amid a broader market pullback, Worldcoin [WLD] failed to hold $0.40 and fell to $0.38 after being rejected at $0.43. As of this writing, the asset traded at $0.396 after slightly declining by 1.83% on the daily charts.
Following the price drop, WLD fell below its short-term moving average (EMA20), indicating a short-term bearish bias.
Worldcoin whale dumps 14.19 million WLD
With WLD slipping below $0.4, some investors, especially whales, have capitulated, reducing risk exposure.
According to Arkham, the wallet associated with Justin Bram received 9.37 million WLD, valued at $3.79 million, from the WorldCoin Vesting Wallet.
The wallet received these tokens more than two months after it last received over 8 million WLD.
Source: Arkham
Shortly thereafter, the wallet deposited 14.19 million WLD, equivalent to $5.72 million, into Binance. After the sale, the whale still holds 4.82 million WLD worth $1.94 million in his wallet.
The quick timing of the sale signaled a lack of confidence in the market. Often, increased selling, especially by large holders, exerts greater pressure and also incentivizes others to sell.
In fact, the altcoin’s Exchange Flow Balance jumped from -98k to 14.18 million WLD on the 17th of February. The Exchange Flow Balance reaching such elevated levels suggested that most active participants were selling.
Source: Santiment
As a result of increased sell-side activity, the altcoin’s scarcity reduced. As such, Worldcoin’s stock-to-flow ratio dropped from 171k recorded a week ago to 2.4k.
Such a drop indicated an increased supply of WLD available for immediate selling. Often, reduced scarcity accelerates downside pressure, a prelude to lower prices.
More downside pressure for WLD?
Worldcoin exhibited bearish momentum and structural weakness across the board due to increased sell-side pressure.
Sellers have overwhelmed the market, making any buy-side activity insufficient to absorb any downside pressure.
As a result, the altcoin’s Stochastic RSI made a bearish crossover and dropped from 92 to 75, indicating a strong bearish bias.
Likewise, Worldcoin appears to be trading below its moving averages, further validating this weakened market structure.
Source: TradingView
Under WLD, altcoins are in a risky position that could drive prices further down. Therefore, if supply-side pressure persists, WLD could drop to $0.35.
For any significant trend reversal, WLD must flip EMA20 at $0.41 and EMA50 at $0.46. Until then, Worldcoin could experience a prolonged period of weakness.
Final Summary
- Justin Bram’s wallet sold 14.19 million WLD worth $5.72 million after receiving 9.37 million WLD from the WorldCoin Vesting Wallet.
- Worldcoin fell below its short-term moving averages, hitting a low of $0.38 amid rising sell pressure.