Worldcoin (WLD) surged 25% last week, fueled by the success of its World ID project, now spanning over 40 countries. However, the token saw a 17% drop, currently trading at $2.21.
Impact of Profit-Taking
As Bitcoin's price hit a new all-time high, other altcoins followed suit, including Worldcoin, which rose impressively to $2.88 last week. However, after reaching a three-month resistance level, Worldcoin began to decline. A key factor in this drop is that 97% of Worldcoin holders are in profit, signaling a potential market top as investors lock in gains.
Rising Selling Pressure
Another reason for the decline is that over 25% of Worldcoin's active addresses are in profit, prompting holders to sell and adding to the selling pressure, which dampens upward momentum.
Worldcoin's Global Popularity
Worldcoin, co-founded by Sam Altman, is expanding globally, recently launching in Costa Rica, Poland, and Austria. Despite some regulatory challenges in Spain, Germany, and South Korea, the project continues to attract both individual and institutional investors, with over 16 million users verified. Altman expressed optimism about the future of cryptocurrency.
Worldcoin is facing resistance at $2.48. If the decline continues, the next support levels are $2.00 and $1.74. WLD is currently trading around $2.23.
