Worldcoin Plunges 21% as Thailand Ban Triggers Momentum Washout Below Critical Support
Market Structure Shifts Lower
- Thailand’s biometric data ban forces immediate shutdown of operations, erasing December gains
- RSI crashes to 37.6 on daily timeframe – first oversold signal since October collapse
- Price devastated below entire EMA ribbon as $0.63 becomes new resistance overhead
Worldcoin (WLD) has been absolutely clobbered this week, tumbling 21% to $0.63 as Thai regulators ordered the immediate deletion of 1.2 million biometric records and banned all operations in the country. The devastating drop erased December’s entire recovery attempt and sent the token spiraling to fresh multi-month lows. The main question for traders is: can bulls defend the psychological $0.60 level, or will regulatory headwinds fuel a complete flush toward $0.50?
| Metric | Value |
|---|---|
| Asset | WORLDCOIN (WLD) |
| Current Price | $0.63 |
| Weekly Performance | 4.16% |
| Monthly Performance | -21.01% |
| RSI (Relative Strength Index) | 37.6 |
| ADX (Average Directional Index) | 31.0 |
| MACD (MACD Level) | -0.05 |
| CCI (Commodity Channel Index, 20-period) | -64.61 |
RSI Plunges to 37.6 – Momentum Exhaustion Matches October Capitulation
Momentum indicators paint a grim picture with RSI collapsing to 37.6 on the daily timeframe, marking the first oversold reading since October’s brutal 46% washout. What’s particularly revealing is how rapidly sentiment shifted – just two weeks ago, RSI sat comfortably above 50 as bulls attempted to reclaim the 20-day EMA. The Thailand ban news hit like a sledgehammer, triggering stop-loss cascades that sent momentum into freefall.
Looking at historical precedent, similar RSI washouts below 40 have marked short-term capitulation points for WLD. The October bottom at 34.5 preceded a 35% relief bounce, while September’s 38 reading sparked a two-week recovery rally. So for swing traders, this oversold extreme suggests a technical bounce could materialize near $0.60 support – though any rally faces the headwind of ongoing regulatory uncertainty and the Upbit withdrawal suspension adding to liquidity concerns.
ADX at 31 Confirms Sellers Control Trending Move
Trend strength indicators confirm this isn’t just a minor pullback – ADX reads 31, signaling strong directional conviction behind the selloff. The surge from 15 to above 30 in just five trading days marks the sharpest acceleration in trend strength since November’s breakdown. Basically, we’ve shifted from choppy consolidation to a genuine trending environment where sellers maintain firm control.
Given the ADX configuration, range-trading strategies that worked during December’s sideways grind no longer apply. Day traders should adapt to the trending conditions by fading any rallies into resistance rather than buying dips. The combination of regulatory crisis in Thailand and exchange suspensions at Upbit created the perfect storm for trend followers to press their shorts, and ADX above 30 suggests this bearish momentum has room to extend before exhaustion sets in.
Price Trapped Below Entire EMA Cloud After 20-Day Support Fails
The moving average structure tells a story of complete technical breakdown. WLD currently trades below the entire EMA ribbon – the 10-day ($0.675), 20-day ($0.715), and critically, the 50-day EMA at $0.794. Most damaging was Monday’s decisive loss of the 20-day EMA, which had provided reliable support during December’s consolidation phase. That former support at $0.715 now transforms into immediate resistance overhead.
Bulls face a mountain to climb with multiple resistance layers stacked above current price. The 50-day EMA at $0.794 represents the first major hurdle for any recovery attempt, sitting roughly 26% above current levels. Even more concerning, the 100-day EMA looms at $0.913 and the 200-day EMA at $1.05 – both far overhead and declining. This bearish EMA alignment suggests the path of least resistance remains lower unless bulls can engineer a high-volume reclaim of at least the 20-day average.
$0.60 Psychological Level Becomes Final Defense as Resistance Stacks Overhead
Immediate resistance clusters densely between $0.675 and $0.715, where the 10-day and 20-day EMAs converge with the weekly pivot. Above that, sellers have fortified the $0.79-$0.82 zone with the 50-day EMA and monthly pivot creating a formidable barrier. The December highs near $0.90 feel like ancient history now, requiring a 43% surge just to retest – highly unlikely given the Thailand ban fallout and frozen Upbit liquidity.
On the support side, bulls make their last stand at the psychological $0.60 level, which has historically attracted dip buyers during previous washouts. Below that lies an air pocket down to $0.50, where the yearly lows from October might provide distant support. The weekly low at $0.570 offered a brief bounce Tuesday, but the rejection was swift and convincing.
The market structure screams caution with price trading below all major moving averages and regulatory storm clouds gathering. The Thailand shutdown represents just one jurisdiction, but it sets a concerning precedent that other countries might follow. This regulatory overhang transforms every bounce into a potential exit opportunity rather than a buying chance, keeping a lid on any recovery attempts.
Bulls Need Miracle Close Above $0.715 to Halt Bleeding
Bulls require a decisive daily close above the 20-day EMA at $0.715 to even begin repairing the technical damage. Such a move would need to be accompanied by resolution of the Upbit situation and some positive regulatory developments to offset Thailand’s ban. The AMPC privacy enhancement announcement got completely drowned out by the negative headlines, showing how sentiment has shifted entirely risk-off.
The bearish scenario accelerates if $0.60 psychological support cracks on volume. That breakdown would likely trigger another wave of liquidations targeting the October lows near $0.50, potentially even $0.45 if panic selling takes hold. With RSI already oversold and ADX elevated, the setup actually favors a relief bounce first – but any pop faces immediate resistance at $0.675.
Given the confluence of regulatory headwinds, exchange disruptions, and broken technicals, the most probable near-term path sees WLD chopping between $0.57 and $0.67 while digesting the Thailand news. Without a catalyst to shift the narrative away from regulatory crackdowns, rallies should be sold rather than chased. The weekly timeframe remains in a clear downtrend, suggesting patient bears can wait for better shorting opportunities on any oversold bounces.
