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Worldcoin (WLD) price slipped below the $2 support level on Tuesday, with losses in August rising toward the 25% mark. On-chain data analysis shows that Worldcoin whale investors have reacted unusually to the ongoing price correction.
Worldcoin (WLD) has been under the media spotlight this week after being caught in regulatory crosshairs with Kenyan authorities. A deeper inquest into the underlying on-chain metrics explores how whale investors have reacted to the underwhelming WLD performance in August.
Worldcoin Has Struggled to Sustain User Traction
Worldcoin caught the crypto investors’ attention at launch. However, amid growing skepticism surrounding its proposal to collect users’ biometric data and Iris scan, the WLD token is beginning to lose traction.
According to Santiment, active users adopting WLD in daily transactions have declined steeply.
As illustrated below, Worldcoin only attracted 440 Active Addresses on August 8. Worryingly, this represents an 80% drop from the 2,272 active addresses recorded on the July 24 launch date
The Daily Active Addresses (DAA) is a critical measure of economic activity on a blockchain network. It aggregates the number of unique wallet addresses interacting within a given period. When it declines, it signals growing disinterest among network participants.
Remarkably, the number of user wallets registered on Worldcoin crossed 1 million addresses last week. However, this 80% drop in DAA means that only a fraction of them are actually adopting WLD for daily transactions.
Unsurprisingly, the WLD price has now slumped 18% in August, losing the critical $2 support in the process.
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Resilient Crypto Whales Have Continued to Buy WLD
Despite the 18% price decline amid several bearish on-chain indicators, whale investors have continued to buy Worldcoin. The Santiment chart below shows that the whales holding 100,000 to 1 million WLD tokens were scoping the dip in August.
As of August 1, the whales held a cumulative balance of 4.02 million WLD tokens. But as of August 9, the whales now have 5.02 million WLD.
At the current market value of $1.90, the Worldcoin whales have now made a fresh investment of $1.90 million within the first ten trading days in August.
This shows how the Worldcoin whales have taken advantage of the recent dip to purchase more WLD tokens. Typically, when whale investors react to a price dip by buying more tokens, it signals that they are confident of an early price recovery.
WLD Price Prediction: The $1.90 Buy-Wall Could Trigger an Early Rebound
Considering the sustained bullish momentum among the whale investors, Worldcoin (WLD) price will likely defend the $1.90 support level. And if the bulls can financially outmuscle the retail bears, it is only a matter of time before WLD reclaims the $2 milestone.
However, if the ongoing regulatory squabbles tilt the market momentum, WLD could further slide below $1.90.