Worldcoin (WLD) Falls as FTX Estate Plans Bulk Token Sale

The price of Worldcoin (WLD) has experienced a significant drop, declining by 20% over the past week under increased bearish sentiment. Additionally, concerns are mounting as the FTX estate prepares to sell a considerable amount of locked WLD tokens at a considerable discount.

This could intensify selling pressure and adversely affect the token’s price. Coupled with technical indicators indicating a downtrend, WLD is struggling to regain the market enthusiasm it once enjoyed.

WLD Social Dominance Fell by 78% Over the Past Week

The 7-day Social Dominance Moving Average for WLD has nosedived to 0.132%, contrasting sharply with the 0.60% recorded on September 25. This peak in social dominance aligned with WLD’s price rise to $2.15, its highest mark since August 1.

Social dominance indicates the share of attention and conversation a cryptocurrency commands across social media channels relative to other assets. The significant drop in WLD’s social engagement may suggest diminishing hype around the token.

Read more: What Is Worldcoin? A Guide to the Iris-Scanning Crypto Project

This trend is particularly notable considering that WLD has plunged by -53.20% year-to-date, its market cap has dipped below $1 billion, and it has lost an astonishing -85.57% from its peak price.

These combined elements indicate that WLD may be losing momentum and is struggling to reclaim the excitement it previously generated in the market.

FTX Estate to Sell Worldcoin at a Discount

The auction of 22.3 million locked Worldcoin tokens by the FTX estate, valued at approximately $37.7 million, poses a substantial risk to WLD’s market price by adding downward pressure. This is particularly crucial as the anticipated discounts range from 40% to 75% off the current market price of $1.69. The selling is slated to commence today, October 2.

Presenting such a large quantity of tokens at a steep discount could adversely affect market sentiment. It may indicate to investors that the tokens are being liquidated at a lower value, potentially leading to predictions of further price drops.

This considerable discount could also risk undercutting the token’s current market price, as buyers in the auction would acquire WLD tokens at a significantly lower cost than available in the market. This situation could trigger sell-offs once these tokens become liquid, further reducing the price.

Moreover, the lengthy lockup period, with tokens unlocking daily until 2028, might heighten investor uncertainty regarding the token’s future liquidity. With only a limited number of tokens unlocking each day, concerns may arise about the available supply and whether future demand will be robust enough to absorb the steady influx of newly unlocked tokens.

WLD Price Prediction: Is a Significant Downtrend Inevitable?

Recently, WLD witnessed a golden cross in its EMA lines, where the shorter EMA surged above the longer EMA, driving a price increase from $1.53 to $2.18 between September 23 and September 26. EMA (Exponential Moving Average) lines serve as indicators that give greater weight to recent price data, enabling traders to identify trends more quickly than simple moving averages.

However, despite this initial bullish momentum, WLD has declined by 20% in the past week. The shorter EMA appears to be crossing below the longer EMAs, signaling a bearish trend, suggesting a shift in momentum from buyers to sellers.

Read more: Worldcoin (WLD) Price Prediction 2024/2025/2030

Given the FTX estate’s auction of WLD tokens alongside the recent downturn in social dominance, WLD may be entering a more pronounced downtrend. Its immediate support stands around $1.51, and if selling pressure persists, it could drop to as low as $1.28.

Conversely, if WLD successfully rebounds, it may face resistance levels at $1.84 or $1.98. Breaking through these levels could ignite a rally towards $2.47, representing its highest price since late July.