Worldcoin sparks fear with $25.6 million token shift: Can WLD defend $0.55?
The Worldcoin team has once again unsettled the market after moving a massive batch of WLD tokens, reigniting concerns about further price declines and potential sell pressure on already-fragile support levels.
According to on-chain data, a wallet controlled by the core Worldcoin team transferred 44 million WLD tokens, valued at around $25.6 million at current prices. These tokens were not burned or locked, but instead redirected to two additional team-associated addresses. One of the wallets received 24 million WLD, while the second collected 20 million WLD, raising questions about the ultimate purpose of these transfers.
On-chain history makes the situation even more sensitive. In previous instances, tokens from similar team wallets were funneled to exchanges, often via intermediary wallets linked to trading firms such as Amber Group. Each such event has typically been followed by increased sell pressure and renewed downward momentum in WLD’s price.
A recent example illustrates the risks: about a month earlier, the team moved 40 million WLD tokens that eventually made their way to exchanges. Soon after, WLD’s price slid to a local low near $0.56, amplifying the existing bearish trend and eroding investor confidence.
At the time of writing, Worldcoin is changing hands around $0.58, having managed a modest 1% uptick on the daily chart. However, this small recovery does little to offset the broader downtrend. Over the past week, WLD has shed roughly 7.2%, continuing a multi-month pattern of weakness.
Technically, the picture remains grim. WLD has been locked inside a long-term descending channel, consistently trading below its 20-, 50-, 100-, and 200-day moving averages. This structure reflects a market where rallies are routinely sold into, and where every short-lived bounce has been an opportunity for bears to reassert control.
Momentum indicators only reinforce this view. The Stochastic Momentum Index for WLD has sunk deeper into negative territory and recently hovered around -37, a reading that typically denotes strong downside momentum. In such conditions, even neutral news can pressure prices—while any hint of additional supply, such as large token transfers, becomes especially damaging.
On the order flow side, the dominance of sellers is equally visible. Recent derivatives and spot data show that Sell Volume has outpaced Buy Volume, with roughly 10.65 million in Sell Volume versus 9.8 million in Buy Volume over the last 24 hours. The resulting negative Buy-Sell Delta of about -0.85 million confirms that more traders are offloading WLD than accumulating it.
Spot Taker Cumulative Volume Delta (CVD), a metric that tracks whether aggressive buyers or sellers are in control, has also flipped back into the red after two brief days of buyer-led activity. This reversal suggests that whatever attempt bulls made to reclaim control has failed, with sellers once again overwhelming the order books. When Spot Taker CVD is negative, it usually signals that market participants are hitting sell orders more aggressively than buys, a clear sign of capitulation or continued pessimism.
The psychological impact of the Worldcoin team’s token movements should not be underestimated. In a market already under pressure, large internal transfers are often interpreted as preparation for exchange deposits, and by extension, for potential selling. Even if the tokens are not immediately dumped on the market, the fear that they might be is often enough to drive traders to front-run the move by selling early.
This combination of technical weakness, on-chain activity, and negative sentiment puts the $0.55 support level firmly in the spotlight. If selling pressure intensifies—especially if on-chain data later confirms that some or all of the 44 million WLD tokens landed on centralized exchanges—WLD could easily test and potentially break below this line. A clean breach of $0.55 would open the door to the next key support area near $0.50, a psychologically important round number and a level where short-term traders may look for quick rebounds or “dead cat bounces.”
For the bearish outlook to be invalidated, WLD would need to stage a more convincing recovery. Analysts are watching the $0.60 mark as the first serious hurdle. A decisive move above this level, backed by strong volume and a shift in Spot Taker CVD back into positive territory, would indicate that buyers are starting to regain control. From there, the next objective would be reclaiming the 20-day exponential moving average, currently sitting around $0.635. Only by overcoming these resistance points could WLD begin building a more sustainable bullish structure instead of just short-lived relief rallies.
In the bigger picture, the current episode raises familiar concerns about token economics and transparency. Large team-controlled allocations and periodic transfers tend to weigh on investor trust, especially when they coincide with multi-month downtrends. Market participants increasingly scrutinize not just technology and vision, but also unlock schedules, treasury management, and the behavior of early insiders. Projects that fail to communicate clearly about large token moves risk compounding volatility and accelerating sell-offs.
For traders and holders, risk management becomes paramount in such an environment. Those considering short-term trades in WLD may focus on intraday levels around $0.55–$0.60 and watch closely for confirmation signals: changes in volume, improvements in momentum indicators, or a visible reduction in sell-side pressure. Longer-term investors, on the other hand, might pay more attention to whether Worldcoin can eventually break out of its descending channel and reclaim its major moving averages, which would suggest a structural shift in trend.
Another important factor to monitor is whether the broader crypto market provides any supportive backdrop. If major assets like Bitcoin and Ethereum enter a renewed uptrend, some of the systemic selling pressure on smaller altcoins like WLD could ease, potentially giving Worldcoin room for a relief rally. Conversely, a broader risk-off phase across digital assets would likely magnify WLD’s vulnerabilities and make a breakdown below $0.55 more probable.
There is also a narrative dimension at play. Worldcoin has attracted attention not only as a token but as a controversial project tied to biometric identity and ambitious global adoption plans. In bull markets, such narratives can fuel speculative interest and rapid price appreciation. In bearish or uncertain phases, however, the same narratives can turn into points of criticism, especially when combined with token unlocks, internal transfers, or perceived selling by insiders.
For now, the market’s verdict is clear: WLD is in a strongly bearish phase, and each new signal of potential additional supply—such as the latest 44 million-token transfer—adds another layer of pressure. Unless the team provides more clarity about the purpose and destination of these tokens, or unless technicals and order flow start showing a meaningful shift toward buyers, the path of least resistance appears to be down.
In the short term, all eyes remain on the $0.55 support. If it holds, WLD might manage to consolidate and attempt a rebound toward $0.60 and the 20-day EMA at $0.635. If it fails, the market will likely start pricing in a move toward $0.50 and potentially lower, depending on how aggressively sellers continue to offload their positions.
As always, WLD’s trajectory will ultimately depend on a mix of internal decisions—such as how the team handles its token reserves—and external forces, including overall crypto sentiment and liquidity conditions. Until clearer signs of strength emerge, caution is likely to remain the dominant strategy among traders watching Worldcoin.