Worldcoin Drops After Kenya and Indonesia Suspend Operations
Worldcoin is facing a notable downturn as new legal challenges emerge in Kenya and Indonesia.
Following a robust rally in April, the token has retraced some of its recent gains, dropping 7% in a single day and over 22% for the week. Despite this decline, trading volume for Worldcoin (WLD) surged by 64%, indicating that traders are swiftly adjusting to market changes. This development occurs alongside heightened scrutiny from global regulatory bodies.
A recent court ruling mandated by the Kenyan High Court on May 5 requires the Worldcoin Foundation to erase all biometric data collected in the nation, encompassing facial and iris scans. As reported by local outlet Kenyans.co.ke, the ruling also bars the project from collecting any additional data.
This decision criticized Worldcoin for its practice of providing crypto incentives in exchange for sensitive personal information. It followed a lawsuit from the Katiba Institute contesting the company’s handling of personal data obtained via its application and orb devices.
Similarly, Indonesia has halted Worldcoin’s digital identity platform, World ID, citing legal infractions. According to a statement from the Ministry of Communication on May 4, one of the entities associated with the Worldcoin brand was improperly registered. As a result, authorities have suspended Worldcoin’s certification and have summoned relevant parties for further inquiries.
From a technical perspective, WLD is currently trading around $0.88, a decline from its April high of $1.20. The price has stabilized since late April and is currently just above a support level of approximately $0.86.
Nevertheless, the token exhibits indications of short-term fragility after dropping below the 20-day moving average. The relative strength index has decreased from overbought levels to 47, suggesting reduced buying pressure, although it has not yet entered bearish territory.
The next crucial levels to watch are $0.80 or potentially $0.75 if WLD cannot maintain support around $0.86. Conversely, a rebound could drive the price back toward the $0.94 resistance level, but regaining bullish momentum may require robust trading volumes and favorable news.
The future of Worldcoin now depends on its capacity to tackle escalating regulatory challenges in key markets.