Key Points
- Worldcoin fell nearly 7% after rising 21% in a week
- WLD Key support level approaching $0.50
- Concerns about token supply may make the next round of rebound more complex.
The cryptocurrency Worldcoin ( WLD ), which is related to the digital identity project of OpenAI's Chief Executive Officer Sam Altman, fell by nearly 7% on October 22, giving back some of the recent 21% weekly gain. Traders are re-evaluating the sustainability of this rebound.
Earlier on Thursday, WLD traded at around $0.5455, experiencing a 6.61% decline over the past 24 hours. Trading volume also decreased significantly, indicating that the token's previous upward momentum is cooling down, rather than accelerating to form a broader breakout.
Worldcoin Price decline, 21% rebound momentum weakening
In this round of selling, the trading volume of Worldcoin decreased by approximately 38.5%, with a market value of around 2.08 billion US dollars.
However, the token has still been in an upward trend over the past week, indicating that this pullback has not completely erased the recent gains.
This kind of fluctuation is also similar to the speculative rebound in June, when Arthur Hayes supported Maelstrom, which described Worldcoin as a promising AI related investment.
Worldcoin Will face more selling pressure?
For traders assessing price prospects, the circulating supply of Worldcoin remains an important consideration.
As shown in Tokenomics.com, during an ownership event on October 24th, there were approximately 100.1 million WLD tokens, valued at around 59 million US dollars based on their reference price. The distribution structure was as follows: 48.6% was allocated for community distribution, 28.3% to private investors, and 23.1% to insiders.
However, different token trackers do not classify the ongoing release arrangements for World in the same way. This event should not be considered as a confirmed one-time deposit into the exchange, nor should it be automatically regarded as an increase in the supply that is immediately tradable.
As Coinpaper explained in their token unlocking analysis, the planned releases do not necessarily lead to a sell-off, as recipients can choose to continue holding the tokens.
The ecosystem of World has also attracted corporate investment. Eightco previously disclosed holding a large number of WLD treasury positions, which provides another example of institutions coming into contact with this token.
However, an increase in corporate holdings and the adoption rate of World ID does not automatically mean that there will be a new demand for buying WLD.
Worldcoin Price forecast: Will WLD fall below $0.50?
Short-term technical analysis indicates that the first major resistance level for WLD is around $0.596, with another resistance level near $0.624.
If the daily closing price continues to stay above $0.60, it will enhance the bullish rebound scenario; if trading activity improves, prices may further rise to the range of $0.62 to $0.66.
On the contrary, if the price remains below $0.54, it could fall to around $0.50, where several technical indicators indicate that there is stronger support.
If it clearly breaks below this psychological barrier, market attention will shift to $0.45, which means there is still about a 17% potential for further decline from the $0.54 range.
This investment logic is still closely related to the demand for "proving human identity" technology. However, previous institutional studies have questioned whether the expansion of AI activities will necessarily bring value to public chain tokens.
