Worldcoin stuck after 70% drop from peak — More downside for WLD price?

cointelegraph.com:

The price of Worldcoin (WLD) has stabilized after a volatile debut across mainstream cryptocurrency exchanges.

On July 29, WLD price rose nearly 6% to $2.35. Still, the token was down 70% from its market debut peak of $7.50.

It now appears stuck inside the $2-2.50 trading range, hinting at a growing bias conflict in the market.

Notably, WLD is a part of the Worldcoin Foundation launched by OpenAI's Sam Altman on July 24.

The token has a maximum circulation supply of 143 million with 43 million going to Worldcoin's app users via "airdrop" — 25 WLD per user — if they verify their identity using an eye-scanning physical orb.

The remaining 100 million tokens have been loaned to market makers outside the U.S. until October 2023. These market makers can return the WLD tokens or buy them for $2 + ($0.04 * X) — where X is the number of tokens being purchased divided by 1 million.

As a result, WLD price appears to be anchored around the $2 level, which, according to Kaiko Research, could be Worldcoin's strategy to keep the token attractive for potential users.

"Convincing people to scan their eyes for 25 units of a token that doesn’t yet exist can be challenging; if the token’s price is, say, $0.10, it’s even more challenging," the data analysis firm said in its latest report, adding:

The total number of Optimism wallets holding WLD tokens have jumped to nearly 305,000 since July 24, according to Dune Analytics.

Meanwhile, the WLD transfer volume has dropped in the same timeframe. These metrics show that most traders have preferred to hold the token.

As a newly launched token, WLD lacks enough trading history to conduct a long-term price analysis. However, on a shorter-timeframe chart, the Worldcoin token appears to be fluctuating