Worldcoin team dumps WLD worth $5.5 mln: How was price impacted?

Despite ongoing market weakness, Worldcoin [WLD] has faced intense selling pressure from large entities. One of the most active entities on the sell side is wallets linked to the Worldcoin team. 

Worldcoin team dumps 21.17 million WLD

According to Onchain Lens, two wallets deposited a combined 21.17 million WLD worth approximately $5.57 million into Bybit. 

After moving these tokens three weeks ago, these two wallets finally decided to cash out, especially with the market having barely moved. 

In fact, since the first movement, WLD has barely moved on its price charts and sold at a $260k loss. The team’s decision to sell reflected bearishness in the market.

Bears overwhelm the market

Besides team-linked wallets, most active market participants have significantly increased spending. According to Coinalyze data, Worldcoin saw 24.4 million in sell-side volume. Binance saw the highest selling volume, reaching 18 million. 

In fact, the net buying on Binance has remained deeply negative, dropping to -127 million, a clear sign of aggressive selling. 

Coupled with that, Sellers’ Strength surged to 100, while the buyer’s Strength plummeted to 0. This suggested that demand has dried up across the market, with sellers overrunning it. 

As a result, the Bulls v. Bears indicator has remained negative for nine consecutive days, currently at -9.1. This suggests that bears have a strong hold of the market, and buyers have done little to resist the pressure. 

Historically, extended bear dominance has preceded a further weakening of market structure, leading to price declines. 

Can WLD’s $0.26 support finally break?

The latest team sell-off has hardly impacted the altcoin’s price movement. In fact, WLD has hovered around $0.26 over the past seven days and still holds near this level.

Even more so, the downside momentum has remained strong. Looking at the altcoin’s Stochastic Momentum Index, this momentum indicator fell sharply and dropped deeper into the negative zone.

SMI currently sits at -83, which is highly elevated oversold territory, suggesting sellers have a commanding market control.

Likewise, the positive DMI-ADX Smoothing index fell to 22, while the negative index rose to 24, validating the strength of the downtrend.

These momentum indicators suggest that the prevailing trend is likely to continue. If selling pressure, especially from the team, persists, Worldcoin could slip below $0.26, with $0.24 acting as immediate support.

Failure to hold this level will see WLD touch a $0.20 low. However, if the $0.26 level holds despite selling, the altcoin could target the $0.3 resistance level.

Final Summary

• Two wallets linked to the Worldcoin team sold 21.17 million tokens worth $5.57 million.
• WLD faces extreme selling pressure from all market participants, threatening to breach the stubborn $0.26 support level.