The crypto market can be unforgiving, and the recent plunge of Worldcoin (WLD) proves just how volatile the space can be. Despite being backed by Sam Altman, CEO of OpenAI, the project has left 84% of its investors at a loss. So, what led this once-promising AI-linked cryptocurrency to crash? Let’s break it down.

Unstoppable Decline Despite Big Backing

On October 3rd, Worldcoin experienced a sharp drop of 9% within 24 hours, sinking to $1.56. In a week, it lost 25% of its value, leaving many holders in a panic. Even with OpenAI’s successful $6.6 billion fundraising, which some thought would stabilize Worldcoin, the opposite occurred—investors were not convinced, and the market continued to lose faith.

Speculation and Market Movements

The crypto market thrives on speculation, and Worldcoin is no exception. While it has strong links to AI technology, it depends heavily on market trends, especially signals from Bitcoin and other major cryptocurrencies. Unfortunately, Worldcoin couldn’t hold its ground at critical price levels like $1.59, sparking a wave of panic selling that accelerated its decline.

The situation is not looking any better from a technical standpoint. Worldcoin has dipped below its 50-day moving average, signaling a bearish trend. The MACD (Moving Average Convergence Divergence) indicates growing selling pressure, with red flags suggesting the decline may not end soon. Wallets in profit have dropped from 23% to just 6%, meaning 84% of holders are now at a loss, and many are considering selling before things get worse.

The Bigger Picture for AI Cryptos

Worldcoin’s fall is not happening in isolation. The broader market for AI-related cryptocurrencies has also taken a hit, with the overall market cap down 6%, now sitting at $26 billion. Once considered the future of crypto, AI-linked projects are losing steam, and investors are feeling the heat.

It’s hard to say if or when Worldcoin will bounce back. With the market showing no signs of recovery, and key support levels falling, a strong comeback seems unlikely in the near future. However, crypto markets are known for their unpredictability, so a sudden reversal could happen when least expected. For now, investors should stay cautious and keep an eye on market developments.