What's behind Worldcoin's latest 7.8% price pullback?

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Worldcoin slides 7.81% to $0.3697 today

Highlights

Colombia’s market regulator ordered World Foundation and Tools for Humanity to halt all operations and erase user data over biometric privacy violations.
The regulatory crackdown removes expansion options for both entities in Latin America, escalating legal risks and suppressing growth potential.
WLD/USD trades with persistent bearish momentum; sellers dominate, and further declines toward the $0.3492–$0.3902 range are highly probable.

Market sentiment deteriorates after Colombia orders Worldcoin closure

The Superintendencia de Industria y Comercio (SIC) in Colombia ratified the immediate and definitive closure of World Foundation, formerly Worldcoin Foundation, and Tools for Humanity in Colombia due to violations of biometric data protection laws. According to SIC, the order also mandates the deletion of all previously collected user data, making the regulatory response especially comprehensive. This forced shutdown introduces substantial legal risk and impairs the organizations' ability to operate or expand in a major Latin American market, reinforcing negative sentiment and limiting potential user base.

Bearish momentum confirmed as WLD stays under key resistance

WLD is trading below the 20-period moving average at $0.3858 and the 50-period at $0.3999 on the hourly chart, with further weakness evident beneath the 200-period moving average at $0.3958 on the daily timeframe. The Ichimoku Kijun now stands at $0.3863, offering the nearest area of resistance. Momentum indicators reinforce the bearish picture, as both the Moving Average Convergence Divergence (MACD) and Awesome Oscillator continue to flash sell signals. The Average Directional Index (ADX) shows neutral trend strength, but the Relative Strength Index (RSI) remains deeply oversold at 28.99, confirmed by oversold readings from the Stochastic RSI and Commodity Channel Index (CCI). Bull/Bear Power reflects dominant selling activity throughout the current session, while the absence of meaningful divergences and high volatility point to trending, one-sided price action.

Downside favored as oversold signals persist and support weakens

In the coming 2 to 3 trading days, price action is projected within the $0.3492 to $0.3902 range, reflecting a volatility band relative to current levels. With downside momentum fully aligned and oscillators entrenched in oversold territory, the probability of a further decline is much higher than a reversal. A sustainable bounce would require WLD to break and close above immediate resistance at the Ichimoku Kijun level. Failure to hold the lower end of the 2–3 day band would open the door to increased downside extension, which is the favored scenario based on prevailing technical and momentum signals.

Viktoras Karapetjanc, expert at Traders Union, believes the forced closure of World Foundation and Tools for Humanity in Colombia demonstrates an elevated regulatory risk for Worldcoin. He sees negative market sentiment intensifying as legal constraints and user base losses compound existing technical weakness. Despite the bearish momentum, Karapetjanc maintains a constructive stance, suggesting a robust rebound is possible if resistance is reclaimed. He notes the project’s future will greatly depend on its response to compliance challenges. "If WLD can regain trust and break above immediate resistance, I remain confident in its longer-term recovery potential."

Earlier, analysts noted that Worldcoin was under sustained bearish momentum, with ongoing technical weakness suggesting further downside risks. The addition of significant regulatory action in Colombia now amplifies this bearish outlook, making continued vigilance for a break below the projected volatility band increasingly important for risk management.

Source of Data: WLD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.