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Cryptocurrency News Articles
Worldcoin (WLD): From AI-Linked Crypto to Financial Nightmare
Oct 05, 2024 at 11:00 pm
The crypto universe is ruthless, and in recent weeks, Worldcoin (WLD) has painfully demonstrated this. Despite being backed by the CEO of OpenAI, Sam Altman
The crypto universe can be unforgiving at times, and Worldcoin (WLD) has painfully demonstrated this over recent weeks. Despite being backed by the CEO of OpenAI, Sam Altman, the project has seen its value plummet, leaving 84% of its holders at a loss. Investors, who might have anticipated a rise similar to other successful cryptos, are now faced with a much darker reality. Let’s retrace recent events to understand what went wrong for this promising project.
An Unchecked Fall Despite OpenAI SupportOn October 3, as the crypto market oscillated, Worldcoin followed a worrying trajectory. Its price dropped by 9% in just 24 hours, reaching $1.56. This decline was not an isolated event; over seven days, the WLD token lost 25% of its value, plunging its holders into a spiral of losses.
But how can such a setback be explained? Recent events include OpenAI's $6.6 billion fundraising drive, which could have been perceived as an opportunity for WLD to stabilize or even rebound. However, this event did not have the expected effect. Some might even consider it a strategic error.
Contrary to expectations, markets did not react favorably. Even worse, Worldcoin continued to fall. This fundraising, although impressive, failed to convince investors of the long-term solidity of the AI-linked crypto.
Another key factor lies in the speculative nature of the crypto market. The Worldcoin project, although linked to AI, heavily depends on global market movements and signals emitted by Bitcoin and other altcoins.
Unfortunately, WLD failed to defend its critical supports, notably the threshold of $1.59, marking the beginning of its plunge. This loss of confidence translated into a strong downward movement, fueled by fear and cascading sell-offs.
Indicators in the Red: An Uncertain Future for WorldcoinThe technical indicators are hardly more optimistic. The WLD crypto has now fallen below its 50-day moving average, confirming that the short-term trend is decidedly bearish.
The MACD (Moving Average Convergence Divergence) reinforces this hypothesis by indicating increasing selling pressure, with red bars accentuating the prospect of continuous decline.
If buyers do not quickly intervene to support the price, the next critical support level could be the $1.15 Fibonacci level.
The gap between wallets at a loss and those at profit has also sharply widened. In just one week, the percentage of wallet addresses in profit dropped from 23% to a meager 6%.
This means that 84% of current Worldcoin holders find themselves at a loss, a colossal figure that is pushing many to consider selling to minimize their losses. A situation that, if continues, could exert additional pressure on prices, thereby increasing the risk of further declines.
Derivative data is hardly more encouraging. According to Coinglass, the open interest for Worldcoin has fallen by 9% in just 24 hours, indicating that traders are closing their positions.
This trend suggests an increased loss of confidence in the short-term evolution of the crypto. Moreover, liquidations reached $2.47 million, of which $2.15 million came from long positions, highlighting investors’ inability to support prices.
A Heavy Blow for AI-Linked CryptoIt is not only Worldcoin suffering. The overall market for AI-related cryptos is losing momentum, with capitalization down by 6%, dropping to $26 billion.
Projects associated with AI, once considered the future of crypto, are today facing headwinds. The hype around these projects seems to be waning, leading to severe corrections and losses for those who bet big.
So, what can be expected for Worldcoin in the coming months? As long as the overall market shows no signs of recovery, and critical support levels continue to give way, it is difficult to envisage a strong comeback for WLD. Nevertheless, as with any crypto, trend reversals can be swift and unexpected. For some, the fall of USDT heralds the imminent arrival of altcoin season.
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Fascinated by bitcoin since 2017, Evariste has never stopped documenting himself on the subject. While his first interest was in trading, he now actively tries to apprehend all the advances centered on cryptocurrencies. As a writer, he aspires to continuously provide high-quality work that reflects the state of the sector as a whole.
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The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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