Worldcoin Faces Challenges as Alameda Research Liquidates Holdings

Worldcoin (WLD) has been facing a challenging environment in the cryptocurrency market, plunging more than 84% from its peak of approximately $11.74 reached in March 2024.

The altcoin currently shows a stark difference of over $17 billion between its market capitalization and its fully diluted valuation.

After hitting a yearly low around $1.34, WLD has been attempting a recovery over the last three months, forming a potential inverted double bottom pattern.

The Relative Strength Index (RSI) on the daily chart is also showing signs of divergence, indicating possible upward momentum. Additionally, WLD has moved past a long-term downward trend and is retesting its 50-day moving average, which may signal further price increases.

However, activity from Alameda Research, an arm of FTX, raises concerns. The firm has been liquidating its WLD assets as part of a broader strategy to return up to $16 billion to customers and creditors in stablecoins.

Since August 9, Alameda has sold off 1.56 million WLD tokens in batches of roughly 143,000 each and has consistently deposited around 143,770 tokens weekly into Binance. This selling spree has left the company with over 23 million WLD tokens, valued at over $43 million, likely to be offloaded soon.