In-depth analysis
1. Generalized risk aversion in the market (bearish impact)
Overview: Bitcoin dropped by 3% to $88,000 on December 5, triggering long position liquidations amounting to $420 million. Altcoins like WLD (down 9% during the session) experienced amplified selling, as investors reduced their exposure to riskier assets.
In short: the trading volume of WLD over 24 hours has increased by 5.45% to reach $94.5 million, a sign of capitulation. The fear and greed index remained at 21/100 (‘extreme fear’), reflecting generalized risk aversion in the cryptocurrency sector. Altcoins generally underperform compared to Bitcoin during market tensions, particularly due to Bitcoin's dominance (58.7%).
To watch: the ability of BTC to maintain support at $85,000 – a break could amplify WLD losses.
2. Regulatory tensions in Thailand (Bearish impact)
Overview: On November 27, Thailand ordered Worldcoin to delete 1.2 million iris scans, citing privacy violations. This decision follows similar actions taken in Kenya and Germany since October.
In clear terms: every regulatory measure heightens concerns about WLD's underlying biometric model. The project has lost 74% of its value in 12 months, with non-compliance risks now priced into every recovery attempt.
To watch: any updates regarding the Worldcoin appeal procedure or the revised data policies in regulated markets.
3. Failure of technical support (Bearish impact)
Overview: On December 5, the WLD price broke below the critical Fibonacci retracement level of 78.6% ($0.624). The 30-day simple moving average ($0.678) now acts as resistance.
Meaning:
- The RSI at 35.52 indicates an oversold situation, but there is no bullish divergence.
- The MACD histogram has turned positive (+0.0053) but remains below the signal line.
- Next support: the 2025 low at $0.557 (tested twice this week).
Key level: A daily close above $0.624 (former Fibonacci support) could signal short-term relief.
Conclusion
The WLD pullback reflects the widespread deleveraging in the cryptocurrency sector and ongoing doubts about its ability to comply with biometric regulations. While oversold technical indicators suggest a possible stabilization, the cryptocurrency remains vulnerable to further market weakness and regulatory news.
Key point to watch: can WLD hold in the $0.55 to $0.557 range that has supported prices since April 2025? A break at this level could trigger algorithmic selling towards $0.48.$WLD
