Possible causes of the drop
1. Profit-taking
When prices rise quickly, many holders start selling to secure profits. In the case of WLD, a high percentage of the supply was 'in profit', suggesting that many could be liquidating while the market is still hot.
2. RSI / technical indicators in overbought territory
Technical analysis shows that the Relative Strength Index (RSI) is at very high levels, which often precedes corrections. There are signs that the price was already 'stressed' or overbought.
3. Flow to exchanges
An increase in the sending of WLD by retail or short-term wallets to exchanges has been observed, which may imply an intention for immediate sale. This selling pressure can lead to a drop when more people are willing to sell.
4. Strong price resistance
There are important resistance zones around ~ USD 1.80-2.05 that have halted previous recoveries. The price seems to have stumbled upon these barriers, generating pullbacks.
5. Wear after rapid rallies
When the price rises a lot and quickly, without pauses, it is vulnerable to technical corrections even if there are no bad fundamental news. In this case, WLD had a strong recent rally, which also predisposed to a certain pullback.
