Worldcoin Hits $3 Support Again: Can WLD Break Through This Time?

• The coin has surged 90% from a recent low but has struggled to break the $3 resistance level. 

• Large holders have accumulated significant amounts, potentially influencing price trends.

Worldcoin (WLD) has been one of the most talked-about new cryptocurrencies in recent months. The present price has been on the upward trend for the past two weeks; however, the sellers have recently put the price under some pressure. At the time of writing, WLD was selling at $2.35, which is 3.58% down on the last day. This comes at a time when trading volumes have been on the rise due to the adoption of new technology, which has, in turn, given investors confidence. 

No coins selected

Worldcoin Rebounds Sharply, Triggering Short Liquidations

Worldcoin has seen a significant recovery in recent days, rising by 90% from a recent low of $1.72. This caused many short liquidations as traders who were expecting the price to drop further were caught in a short squeeze.

The next token unlock for early investors and the team is planned for July 24; thus, a large supply of tokens is expected to enter the market again. 

However, the WLD has failed to transform the sharp recovery into a breakthrough of the key $3 level. Despite the token climbing to almost 100% in the past week, it has not topped the previous high of $3. 2. This level of resistance is still a factor of concern to WLD up to the present. 

However, the Worldcoin whales have not followed the same pattern as the retail investors. The addresses that have between 1 million and 10 million WLD have added about 13 million WLD worth over $36 million in the last three days. Such an increase has led to price rebounds, as was the case in February and May. 

Moreover, the WLD futures traders have been initiating short positions, which is reflected by the negative funding rate of the token on every renowned cryptocurrency exchange. Coinglass also revealed that the WLD funding rate is -0. 022%, which means that more people are opting for the bearish trade. A negative funding rate means that traders have to pay to hold short positions, indicative of bearish market sentiment. 

Crypto Influencers Raise Alarms About Potential Market Manipulation

Crypto influencer Defi Squared has come out to criticize Worldcoin saying that there is something wrong with the tokenomics, accusing the project of market manipulation. Defi Squared also revealed that out of the 10 billion WLD tokens, only 2. 7% will be added to the market. According to him, this restricted quantity is a calculated effort by the Worldcoin team to influence the price of the token. 

Additionally,  blockchain analyst ZachXBT has expressed his concerns, saying that Worldcoin was used by insiders to take profits through what he calls a ‘scam token. ’ According to ZachXBT, the members of the team and the venture capitalists are involved in manipulating the market for their benefit, and Worldcoin is referred to as the ‘biggest scam token of the bull run. ’