Worldcoin's native token, WLD, plunged 16% in the last 24 hours after a failed breakout attempt, triggering a wave of selling and forcing traders to reduce their leveraged bets. The move wiped out recent gains and pushed the token to a two-week low.
The failed breakout
WLD had been grinding higher over the past week, attempting to break above a key resistance level near $3.20. But the rally stalled, and the token quickly reversed course once sellers stepped in. The rejection was sharp — within hours, WLD dropped from $3.18 to $2.68, according to market data.
Traders had been watching the level closely. A clean breakout above $3.20 could have opened the door to new highs, but the failure instead acted as a catalyst for a rush to the exits. The token hasn't visited these lower prices since early April.
Heavy selling pressure
Volume surged during the sell-off, with over $120 million in WLD changing hands on major exchanges. That's roughly triple the average daily volume from the previous week, suggesting that both spot sellers and leveraged liquidations fueled the move.
Order book data shows that sell orders piled up at every bounce attempt, preventing any meaningful recovery. The token briefly stabilised near $2.70 before sliding further in late trading.
Leverage unwinds
Open interest in WLD futures fell by nearly 30% during the sell-off, a sign that leveraged traders were forced to close positions. The liquidation cascade hit longs hardest — over $8 million in long positions were wiped out in a matter of hours, according to Coinglass data.
The funding rate for perpetual contracts flipped negative, meaning short-sellers are now paying to keep their positions open. That shift usually indicates bearish sentiment, but it also means the market may be oversold in the near term.
Several large wallets moved tokens to exchanges just before the drop, though it's unclear if those were related to the sell-off or routine transfers. No official statement has been issued by Worldcoin's development team since the price action.
The decline comes amid broader weakness in the altcoin market, but WLD's drop was among the steepest among major tokens. Bitcoin remained relatively flat over the same period, suggesting the move was specific to Worldcoin's fundamentals — or lack of a fresh catalyst after the failed breakout.
Where WLD goes from here depends on whether buyers step in around the $2.50 support zone. If that level breaks, the next floor could be near $2.20. For now, the token is trading hands at $2.68, with traders watching for any sign of accumulation or further pain.
