Worldcoin (WLD), the AI-focused cryptocurrency project by OpenAI CEO Sam Altman, has seen notable market activity amid recent developments. Even though Binance recently announced the launch of Worldcoin futures, the price of WLD has stagnated near crucial resistance levels.
The market response follows the cryptocurrency through a volatile time frame, including regulatory issues and a potential token unlock.
Binance Announces WLDUSD Perpetual Contract
On September 27, Binance announced the listing of WLDUSD COIN-M perpetual contracts which will go live on October 2. This new product enables clients to trade Worldcoin with up to 20x margin on the Binance Future platform.
The announcement attracted a lot of traders who were interested in taking advantage of the current price fluctuations of Worldcoin. However, the excitement did not fully translate into a sustained price rally for WLD.
The listing raised hopes as the price increased 27% last week. However, the rally seemed to stagnate as the token neared the $2.10 level. Traders eagerly await further developments since trading volume remains volatile.
Upcoming Token Unlock Raises Concerns
Compounding the mixed market sentiment is a Worldcoin token unlock. It is planned to take place between September 30 and October 6. With an estimated market value of $58 million, this event is expected to expand the circulating supply of WLD tokens.
It could create new volatility forces in the market. Previous token unlocks have caused fluctuations in prices. Often, new tokens’ arrival into the market, could lead to investors selling their tokens.
However, as per Santiment data, the social dominance of Worldcoin is increasing. This trend is positive for WLD as traders and investors become increasingly involved. Yet, it also casts doubt over the longevity of the recent price increases.
The token’s market behavior is also influenced by the overall trend of AI-related cryptocurrencies. The rising usage of the World ID verification of Worldcoin in various countries is also a factor.
Worldcoin Faces Regulatory Hurdles
Furthermore, worldcoin’s market performance has been a victim of the regulation issues that have persisted in the market. The South Korean Personal Information Protection Commission has recently imposed a total penalty of $830,000 on Worldcoin and its sister company, Tools for Humanity, for violating the country’s data privacy laws and for transferring the personal information of the organization’s users across international borders.
This penalty comprised $544,000 for data protection violations. $285,133 was charged for not adhering to the measures that govern the transfer of data across borders. The fine led to a decline in the price of WLD as investors’ panic to the news.
However, the token made a comeback and traded 4% up intraday while proving its stability during the current situation. From a technical view, the price of Worldcoin has shown breakouts from key bearish patterns. More recently, WLD escaped from a descending triangle pattern, which rendered a previous bearish expectation wrong and led the price to the present levels.
Source: TradingView
The cryptocurrency is now at a pivotal point with the resistance at $2.10. Further resistance can be expected at $2.36 and $2.95 levels if the trend remains positive.
Support levels are currently at $1.92 and $1.75, providing key points for traders to watch if the price faces renewed downward pressure. Moreover, with the RSI falling below its signal line, bearish pressure may be gaining the upper hand.
In addition, the Moving Average Convergence Divergence (MACD) has also developed a bearish pattern with the MACD slipping below the signal line. Furthermore, the histogram has dropped into the negative region which backs the bearish shift.
