Worldcoin pulls back after parabolic run amid suspensions in Kenya and Indonesia

Worldcoin has dropped sharply as new legal challenges emerge in Kenya and Indonesia. Following a strong rally in April, the token has lost some of its recent gains, falling 7% in the last day and more than 22% this week. Trading activity in Worldcoin ( WLD ) has increased 64% despite of the price drop, indicating that traders are responding swiftly to any changes. This comes at a time when Worldcoin is increasingly dealing with global regulatory issues. In one of the latest developments, the Worldcoin Foundation was ordered by a Kenyan High Court on May 5 to remove all biometric information it had gathered in the nation, including facial and iris scans. As reported by local media outlet Kenyans.co.ke, the ruling also bans the project from collecting any new data. It criticized Worldcoin’s past use of crypto incentives in exchange for sensitive information. This came after a lawsuit from the Katiba Institute challenged how the company handled personal data using its app and orb devices. You might also like: Worldcoin whale buys dip: Can Sam Altman’s token hit $2? Citing legal violations, Indonesia has also suspended Worldcoin’s digital identity platform, World ID. One of the businesses that operated under the Worldcoin umbrella, according to the Ministry of Communication’s May 4 statement , was not properly registered. As a result, authorities put a hold on Worldcoin’s certification and summoned the relevant parties for additional 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. Worldcoin price analysis. Credit: crypto.news However, the token has indicated short-term weakness by breaking below the 20-day moving average. After cooling from overbought levels to 47, the relative strength index indicates less buying pressure but not yet complete bearish momentum. The next area to keep an eye on 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 depends on how it handles mounting regulatory pressure in key markets. Read more: XRP struggles within a tight range as network activity hits multi-month lows

Source: crypto.news