Worldcoin, the cryptocurrency linked to biometric identification technologies, faces new challenges as its token price falls below $1 amid rising regulatory risks and bearish technical signals.
Regulatory Risks Mount in Asia and Beyond
On August 14, China's Ministry of State Security issued a stern warning against Worldcoin's iris-scanning practices, classifying them as a national security threat. This followed a probe launched in Germany on July 26 regarding issues tied to biometric data storage and handling.
Such restrictions complicate Worldcoin's operations, as the project has already suspended its work in Brazil, France, and India for similar reasons. Community data from August 10 indicates that 46% of WLD's user base is located in Asia, suggesting that new restrictions could significantly hinder adoption in one of its key markets.
Bearish Technical Signals
The technical picture for WLD shows a bearish outlook. The token recently failed to maintain above the $1.28 resistance level and is now trading below all key moving averages, with the 7-day SMA at $1.02 and the 30-day SMA at $1.07.
Momentum indicators also point downward. The MACD histogram sits at -0.006, signaling continued weakness. Analysts warn that a breakdown below the August 17 swing low of $0.913 could accelerate algorithmic selling toward the $0.85 support level.
Worldcoin's Outlook
Despite weak fundamentals, speculative interest in WLD remains high. The circulating supply has grown 19% since May 2025 to 1.88 billion tokens, increasing sell pressure. However, derivatives open interest remains elevated at $290 million, indicating that traders are still betting on volatility.
Worldcoin's prospects underscore how regulatory issues overshadow ecosystem developments, such as its integration with Match Group platforms. Key levels to watch include the $0.91–$0.93 support zone. A rebound could see WLD retest its 200-day EMA at $1.03.
Worldcoin's future hinges on its ability to navigate mounting global regulatory challenges while defending critical support zones in a weakening technical structure.
