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- WLD plunged over 16% after traders rapidly closed leveraged positions.
- Bitcoin demand weakened as exchange reserves and sell pressure increased.
- Massive long liquidations signaled growing bearish momentum across crypto markets.
Worldcoin’s WLD token suffered a sharp selloff this week, dropping more than 16% as traders rapidly pulled back from the market. The decline came alongside a steep collapse in trading activity, with volume falling over 57% during the downturn.
The token slid toward the $0.30 range after failing to maintain momentum above a key resistance level. What initially looked like a breakout quickly turned into a rejection, triggering aggressive selling across both spot and derivatives markets.
Open Interest also dropped nearly 23% to around $252 million, signaling that leveraged traders were closing positions rather than adding fresh exposure. The unwind reflected weakening confidence among short-term speculators who had expected a continued rally.
Long Liquidations Deepen WLD’s Decline
Liquidation data showed bullish traders absorbed most of the damage. More than $3.3 million in long positions were wiped out across major exchanges, while short liquidations remained relatively limited.
Binance accounted for over $1.5 million in long liquidations, with Hyperliquid contributing another major share. The imbalance suggested many traders were heavily positioned for further upside before the sudden reversal.
Technical indicators also showed momentum cooling rapidly. WLD’s Relative Strength Index fell back toward 56 after previously reaching overheated levels above 80. While the RSI remains above neutral territory, buying strength has clearly weakened.
WLD is now trading between resistance near $0.374 and support around $0.227. Analysts say failure to reclaim higher levels could expose the token to additional downside pressure in the coming sessions.
Bitcoin Demand Weakens as Market Sentiment Deteriorates
Bitcoin also faced renewed selling pressure, briefly falling to $72,000 amid rising geopolitical tensions in West Asia and weakening demand across crypto markets.
Data from both spot and perpetual futures markets showed declining buyer activity. Demand growth turned negative, with an estimated contraction of 139,000 BTC, highlighting fading market confidence.
At the same time, long liquidations surged to roughly $347 million, vastly outweighing short liquidations. The imbalance confirmed that bearish momentum currently dominates the market.
Adding to concerns, Bitcoin exchange reserves increased by roughly $1.66 billion since mid-May. Rising reserves often suggest investors are moving BTC onto exchanges, potentially preparing to sell.
Despite some spot buying during the dip, purchasing activity has not been strong enough to offset broader market weakness. Analysts now remain focused on whether demand can stabilize before another wave of liquidations hits the crypto market.
Also Read: Worldcoin Scandal? ZachXBT Compares Sam Altman’s Crypto to FTX Collapse
The latest selloff in both Worldcoin and Bitcoin highlights how fragile crypto sentiment remains after failed breakout attempts and weakening demand conditions. WLD continues struggling under bearish technical pressure, while Bitcoin faces growing concerns tied to declining market participation and rising exchange inflows.
Unless buyers return with stronger conviction, both assets could remain vulnerable to further volatility in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
