Worldcoin Rockets 90%: Can It Sustain Momentum or Will Resistance Hold?

• Worldcoin surged 90% from its recent low, causing short liquidations as traders faced a short squeeze.
• Crypto influencers criticize Worldcoin’s limited token release and market manipulation tactics.

Worldcoin [WLD] experienced a significant rebound, surging 90% from its recent low of $1.72. This unexpected rally triggered a substantial number of short liquidations as traders who anticipated a continued downtrend faced a short squeeze. With the token unlocks for early investors and team members set to commence on July 24th, the market anticipates a potential influx of supply. 

Despite the sharp rebound, WLD struggled to break through the critical $3 resistance zone. Although the token rallied nearly 100% over the past week, it has not convincingly cleared the recent lower high of $3.2. As of this writing, WLD has declined by 6.01% in the past day to trade at $2.71. 

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After the price surge, many Worldcoin holders sought to secure their gains, evidenced by a notable increase in active deposits. The metric, reaching a four-month high, underscored a trend of profit-taking among retail investors.

Contrary to retail investors’ actions, Worldcoin whales adopted a different strategy. Addresses holding between 1 million and 10 million WLD accumulated approximately 13 million WLD, valued at over $36 million, within the same three-day period. Historically, such accumulation has triggered price recoveries, as seen in February and May.

Allegations of Market Manipulation

Crypto influencer Defi Squared has been vocal on social media platform X, asserting that Worldcoin’s tokenomics are designed to manipulate the market. He highlighted that only 2.7% of the total 10 billion WLD tokens are set to be released into circulation. According to Defi Squared, this limited float is a deliberate attempt by the Worldcoin team to control the token’s price.

At its initial launch in 2023, Worldcoin released 140 million WLD tokens. Currently, 278 million tokens are in circulation, with a fully diluted valuation (FDV) of $26 billion. Defi Squared argues that the high FDV is a strategic move to influence market perception and inflate the token’s value.

Defi Squared further claimed that the Worldcoin Foundation manipulates the market through strategic announcements, market maker contracts, and adjustments to token emissions. He suggested that the recent extension of the lock-up schedule is another tactic to stir market sentiment and maintain control over the token’s price.

A significant point of contention is the control insiders have over the circulating supply. Defi Squared revealed that after one year of the unlock event, insiders will hold 60% of the total circulating supply. This concentration of ownership, he argues, allows insiders to dominate the market and control the token’s price.

“60% is a wild proportion – it means the majority of the ecosystem purely exists for VCs to dump. This seems to directly counter the justification that the float is being left low right now to benefit UBI recipients,” Defi Squared commented.

This sentiment was echoed by other crypto personalities. ZachXBT described WLD as “the biggest scam token of the bull run,” while Wazz Crypto criticized the tokenomics, biometric data collection, unlock schedules, and market manipulation tactics as part of an orchestrated scam.