Alameda Moves Part of Worldcoin’s Reserves, WLD Gets Dominated by Shorts

Worldcoin has been experiencing a downtrend on the charts recently. However, that's not all, as recent actions by Alameda could potentially exacerbate

Alameda, the trading arm of the bankrupt crypto exchange FTX, recently moved a portion of its Worldcoin (WLD) reserves, according to data from the on-chain analytics platform Lookonchain.

The Alameda entity in question transferred 205,387 WLD tokens, valued at around $352,000 at the time of the transaction. This development coincided with a legal update regarding a Commodities Futures Trading Commission (CFTC) lawsuit.

A New York judge ordered Alameda to pay $12.7 billion as part of this resolution. The CFTC lawsuit aimed to recover $8.7 billion in restitution for those impacted by FTX and Alameda’s violations of the Commodity Exchange Act. An additional $4 billion was slated for disgorgement of gains obtained through these violations.

According to recent data, Alameda still held 24.795 million WLD tokens, valued at over $43 million at press time. This suggested that more WLD tokens could be moved by this entity in the coming days.

Meanwhile, Worldcoin (WLD) price trended down over the past few weeks on the price charts. However, despite this overarching price direction and the recent Alameda development, WLD saw a significant uptick on 8 August.

This uptick, which saw WLD appreciate by 20.22%, aligned with a broader market recovery observed across several cryptocurrencies. According to AMBCrypto’s analysis, this price increase saw WLD rise from around $1.5 to attain a price of $1.8 at the time.

However, these gains were quickly retraced, with WLD trading at around $1.7 at the time of writing. This price point reflected a 6.52% decrease from its recent peak.

An analysis of WLD’s technical indicators also revealed that the token was still facing bearish pressure, evident from its position below the neutral 50-mark on the Relative Strength Index (RSI).

Short sellers dominated WLD marketRecent derivatives data also highlighted trends that could be impacting Worldcoin (WLD) negatively, especially when it came to funding rates.

An analysis of this data from Coinglass indicated that the funding rate for WLD has been largely 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 largely dominating the market, evident from the fact that they are being paid to keep their positions open. A negative funding rate usually indicates that the cost to maintain long positions was higher than for short positions.

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