Worldcoin (WLD) Price Rallies 3% Despite Worldcoin’s Pause of Spanish Operations

Worldcoin (WLD) has seen a price surge in the last 24 hours despite regulatory concerns in Spain and ongoing European investigations. Opening at $4.75, the price climbed steadily, reaching a peak of $4.92 before facing resistance. This movement indicates robust market activity despite the backdrop of regulatory scrutiny, particularly concerning data privacy issues.

As of press time, WLD was trading at $4.88, a 2.79% surge from the intra-day low.

WLD/USD 24-hour price chart (source: CoinMarketCap)

Worldcoin Regulatory Challenges and Market Response

In a recent development, Tools for Humanity (TFH), the entity behind Worldcoin, announced a voluntary extension to the pause of its orb operations in Spain. This decision aligns with the ongoing audit by the Bayerische Landesamt für Datenschutzaufsicht (BayLDA) in Germany, which is reviewing the company’s compliance with the General Data Protection Regulation (GDPR).

The Spanish Agency for Data Protection (AEPD) has mandated that Worldcoin cease collecting and processing personal data, a directive in place since March 2024.

Despite these regulatory hurdles, Worldcoin’s market capitalization has increased by 4.22%, with a corresponding 0.74% increase in trading volume, totaling about $234.86 million. This suggests that investor sentiment remains positive, driven by the company’s technological advances and recently implemented transparency measures.

Advances in Privacy and Security

Worldcoin has responded to the regulatory demands by enhancing its privacy and security protocols. Notable improvements include open-sourcing its biometric data system and the implementation of advanced age verification controls. Moreover, the company has introduced a feature for deleting old iris codes and transforming them into SMPC shares. These measures aim to address the AEPD’s concerns and reassure users of their data security.

These advancements come at a critical time as the company faces scrutiny not just in Spain but across the European Union. BayLDA’s ongoing investigations are expected to conclude soon, potentially setting a precedent for how tech companies operating within the EU handle biometric data.

Parallel to its regulatory challenges, Worldcoin has achieved major milestones that reflect its growing influence on digital identity. In April 2024, the platform celebrated reaching 10 million users and processing 70 million transactions. Furthermore, the introduction of its “human-centric” blockchain network, World Chain, aims to enhance user experience and utility in Web3 applications.

The project’s resilience is also evidenced by its decision to increase the supply of its token, WLD, by up to 19% over the next six months. This move will fuel further growth and development as Worldcoin expands its technological footprint and market presence.

WLD/USD Technical Analysis

The technical indicators on the WLD price chart suggest that the bullish momentum is strengthening. With the Relative Strength Index (RSI) moving above its signal line with a rating of 58.17, the bulls have the upper hand in the market.

This trend suggests that buying pressure is increasing, hence the potential for the WLD price to test the 24-hour high.

WLD/USD 4-hour price chart (source: TradingView)

Subsequently, the Moving Average Convergence Divergence (MACD) trend upward into the positive region adds to the bullish potential. This trend points to the increasing optimism in the market, backed by the higher histogram bars, which reflect growing buying pressure and investor confidence.