Worldcoin Drops 22% Amid Kenya, Indonesia Regulatory Hurdles

Worldcoin, a cryptocurrency that had experienced a significant surge in value, has recently faced a setback due to regulatory challenges in Kenya and Indonesia. The token, which had been on a strong rally in April, saw a sharp decline, losing 7% in a single day and over 22% for the week. Despite the price drop, trading activity in Worldcoin (WLD) increased by 64%, indicating that traders are actively responding to the changes in the market.

The regulatory issues began to surface when the Worldcoin Foundation was ordered by a Kenyan High Court on May 5 to remove all biometric information it had collected in the nation. This included facial and iris scans, and the ruling also banned the project from collecting any new data. The court criticized Worldcoin’s past use of crypto incentives in exchange for sensitive information, following a lawsuit from the Katiba Institute that challenged the company's handling of personal data through its app and orb devices.

In Indonesia, the Ministry of Communication suspended Worldcoin’s digital identity platform, World ID, citing legal violations. The ministry's statement on May 4 revealed that one of the businesses operating under the Worldcoin umbrella was not properly registered. As a result, authorities put a hold on Worldcoin’s certification and summoned the relevant parties for further questioning.

From a technical perspective, WLD is currently trading close to $0.88 after declining from its April highs of $1.20. The price has been stable since late April and is trading just above support, which is around $0.86. However, the token has indicated short-term weakness by breaking below the 20-day moving average. The relative strength index, which had cooled from overbought levels to 47, indicates less buying pressure but not yet complete bearish momentum.

The next area to watch is $0.80 or even $0.75 if WLD loses support close to $0.86. Conversely, a rebound might drive the price back toward the $0.94 resistance level, but regaining bullish momentum might require high volume and positive developments. The future of Worldcoin now hinges on how it navigates the mounting regulatory pressure in key markets. The cryptocurrency's ability to address these challenges will be crucial in determining its trajectory in the coming months.