- WLD lost some of its gains from its previous trading sessions
- Alameda still holds over 24 million WLD tokens
Worldcoin has been experiencing a downtrend on the charts recently. However, that’s not all, as recent actions by Alameda could potentially exacerbate the situation for this AI-related token.
Alameda moves part of Worldcoin’s reserves
Recent developments involving Alameda, the trading arm of the now-defunct FTX, have brought attention to the movement of Worldcoin (WLD) tokens. According to data from Lookonchain, Alameda recently transferred 205,387 WLD tokens valued at approximately $352,000.
Here, it’s worth noting that this transaction coincided with a significant legal development – A New York judge ordered Alameda to pay $12.7 billion as part of a resolution in a lawsuit filed by the Commodity Futures Trading Commission (CFTC).
The lawsuit’s outcome requires FTX and Alameda to provide $8.7 billion in restitution to those affected by their violations of the Commodity Exchange Act. Also, an additional $4 billion in disgorgement of gains obtained through these violations.
At the time of writing, data revealed that Alameda still held 24.795 million WLD tokens worth over $43 million. In the coming days, we might see more of these tokens moved.
Worldcoin stuck in a bear trend
Worldcoin‘s (WLD) price trend has been on a downward trajectory over the last few weeks. Despite this overarching trend and the recent developments involving Alameda, WLD saw a notable uptick on 8 August though.
Furthermore, this hike aligned with a broader market recovery, as observed across various cryptocurrencies. In fact, according to AMBCrypto’s analysis, WLD appreciated by 20.22%, with its price climbing from approximately $1.5 to $1.8.
Source: TradingView
However, these gains were short-lived. Especially since Worldcoin has since retraced some of them. At press time, it was trading at around $1.7, reflecting a 6.52% fall from its recent peak.
Also, further analysis revealed that WLD was still under bearish pressure, as indicated by its position below the neutral 50-mark on the Relative Strength Index (RSI).
WLD gets dominated by shorts
Recent derivates data further supplemented the negative trends affecting Worldcoin (WLD), specifically concerning the funding rates.
Source: Coinglass
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In fact, an analysis of this data from Coinglass indicated that the funding rate for WLD has been negative over the past few days. At the time of writing, the funding rate was around -0.0197.
This suggested that short sellers have been dominating the market, as they are being paid to keep their positions open. Here, a negative funding rate typically means that the cost to maintain long positions is higher than for short positions.
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