Worldcoin Price Plummets Under $2 as Regulatory Scrutiny Intensifies

Worldcoin price has been in a steep decline for the past few days amid regulatory pressures and a decline in the asset’s buying pressure. The asset has plunged by more than 27% over the past week but remains 1028% higher in the year to date. Worldcoin’ s total market cap has slipped to $210 million, ranking it the 135^th cryptocurrency by market cap. The total volume of the WLD token traded over the last day has crashed by more than 13%.

Regulatory Concerns

Despite making headlines for the past few weeks, Worldcoin has been experiencing a downturn since the start of this month, dropping to its lowest level since its launch on July 24, 2023. The Worldcoin price has been under intense pressure for the past few weeks amid recent news that key developers have left the project and increased regulatory scrutiny globally.

With over 50 altcoins labeled as securities by the US Securities and Exchange Commission, investors have been cautious about Worldcoin’ s status. Notably, Ethereum founder Vitalik Buterin recently raised an alarm about Worldcoin’ s technology, stating that there were major privacy and security concerns. Data privacy watchdogs in Germany and Kenya have been investigating the Worldcoin project over privacy concerns.

Kenya suspended Worldcoin’ s operations on August 2, investigating its observance of citizen privacy rights. Its Kenyan warehouse was raided earlier this week by authorities, while machines with stored data were seized during the operation. The Kenyan government has criticized the project due to the processing of personal data without valid reason which is against Kenyan law.

Germany’s Bavarian State Office for Data Protection Supervision also launched an investigation, with its concerns centered on Worldcoin’ s data processing practices and its transfer of information. Additionally, Argentina’s regulators are currently investigating the company’s operations in the country. Regulators in France and the United Kingdom have also questioned the company’s data handling practices.

With numerous investigation activities on the company, the Worldcoin price is likely to continue falling in the coming days. According to data by Santiment, the number of active users adopting WLD in daily transactions has plummeted over the past few weeks.

Worldcoin Price Prediction

The daily chart shows that the Worldcoin price has been in a bearish trajectory for the past few weeks amid regulatory concerns. The WLD price has formed a descending triangle pattern, shown in yellow, indicating the continuation of the bearish trend in the coming days. Its Relative Strength Index (RSI) is in the oversold region, with the Moving Average Convergence Divergence (MACD) indicator supporting the downward trajectory.

Consequently, the Worldcoin price is likely to pull back in the ensuing sessions as the company faces scrutiny globally. The next support levels to watch will be $1.50 and $1.00, respectively. However, a move above the bullish support level of $2.00 might pave the way for further gains to the important resistance zone of $2.50.

WLD Price Chart