Worldcoin price drops amid $1.6M WLD transfer – Can $0.46 hold?

Worldcoin [WLD] is trending down after hitting a strong resistance level at the $0.60 zone. Consequently, the price of WLD has fallen over 7% in the past 24 hours at press time, reducing its weekly gains to 14%.

The drawdown stems from aggressive selling by the WLD team and other market participants, along with generally weak trading activity.

The most significant selling activity came from a wallet linked to Worldcoin’ s team or venture capital (VC) investors. According to Arkham data, the wallet recently sold 2.75 million WLD worth approximately $1.61 million on Binance.

Before the sale, the wallet conducted a small test transaction of around 10 WLD tokens. This followed a larger transaction roughly six days earlier, when 7.745 million WLD, valued at nearly $4 million, was sold.

As a result, the Spot Taker CVD has turned red over the past two weeks, as per data from CryptoQuant . The daily trading volume was also exceeding $408 million, hinting at why the token’s price was falling. This indicates that most participants were selling the token after buying pressure subsided on the 9th of this month.

Additionally, the network was seeing a decline in activity, as seen in the chain fees, which were at $641 at press time.

Moreover, the DEX and Perps Volume have collapsed from levels experienced at the start of this month. For instance, Perps volume has dropped from $634K to $88.3K, while DEX volume has been averaging about $500K per day.

Still, WLD’s move was consistent with a broader cooling in altcoin sentiment. The Altcoin Season Index dropped from 62 to 58, indicating alts were losing capital.

On the charts, the bears rejected WLD at $0.60, a zone that capped the altcoin’s uptrend for the fourth time. This resulted in the altcoin entering a sideways range that has lasted for almost a month.

The Volume Delta reading reinforces this selling activity, showing that traders sold 6.85 million WLD.

The Bull Bear Power (BBP) confirmed bears were gaining strength as it flipped red. But from the market structure outlook, the mid-level at $0.53 may mitigate the downside risk.

Therefore, WLD may trade down to $0.46, where bulls have held strong against breakdowns four times. If the pressure selling increases, then WLD may lose $0.46 as support and find $0.40, which is the next demand zone.