Worldcoin (WLD) Rises Nearly 110%, Now Faces Correction Due to Technical Signals and Regulatory Risks

Worldcoin (WLD) recently surged nearly 110% in a matter of weeks but is now undergoing a notable correction. The sharp rally was fueled by speculative flows and media attention, while the current pullback highlights underlying risks—including regulatory pressure and declining volume at peak levels.

Factors That Drove the Rally

The rapid price increase was largely driven by optimism around digital identity solutions, announcements of adoption within the Web3 ecosystem, and growing interest in the intersection of AI and biometric technology. However, the move was primarily speculative, lacking strong fundamental support. This made the rally vulnerable once retail interest began to fade.

Technical Indicators and Market Structure

Technical indicators are now flashing warning signs:

• A bearish divergence in the RSI (Relative Strength Index)

• Declining trading volume at recent highs

• weakening momentum despite higher price peaks

These suggest a lack of institutional conviction. Key support levels will be essential to absorb profit-taking. If broken, they could open the door to deeper losses. Conversely, a recovery with strong volume would be needed to renew upward momentum.

Regulatory Risks and Privacy Concerns

Worldcoin faces significant regulatory challenges due to its use of biometric data. Increased scrutiny in key jurisdictions—such as Europe and parts of Asia—has raised uncertainty around data collection and storage practices. How the project responds to these concerns will be critical for restoring market confidence.