WLD Price Could Face More Downside After Claims Worldcoin Violated Personal Data Privacy In Hong Kong
Worldcoin Violated User Privacy in Hong Kong
Key Takeaways
- Hong Kong halts Worldcoin’s biometric data collection.
- Investigation finds Worldcoin’s data practices invasive and non-consensual.
- WLD price may target $3 after recent decline.
Hong Kong’s Privacy Commissioner, Ada Chung Lai-ling, has ordered Worldcoin to cease all operations involving the collection of facial and iris images in Hong Kong, citing violations of the Personal Data (Privacy) Ordinance.
Meanwhile, the price of Worldcoin’s WLD token has been struggling around $5 since May 14. Will this setback finally overturn the sentiment favoring the bears?
What Rules Did Worldcoin Break?
The decision followed an investigation, begun in January 2024, into Worldcoin’s use of iris scanning for identity verification. Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) found this excessively invasive and unnecessary for verifying participant identity.
The investigation, which included covert visits to Worldcoin’s facilities, revealed that the company did not adequately inform participants about using their biometric data or offer documentation in Chinese.
The PCPD deemed collecting biometric data unfair and unlawful. It also criticized Worldcoin for planning to retain this sensitive data for up to 10 years for AI training. By the time of the investigation, Worldcoin had scanned over 8,300 individuals in Hong Kong and faced similar regulatory challenges globally.
Is Worldcoin (WLD) Falling To $3?
From its peak of nearly $12 on March 10, World plummeted by 69% to $3.73 on April 13 before closing the day at $4.40, supported by the 0.786 Fibonacci level.
Since that recovery, the price has been tracking within an ascending channel, now pressing against its support level.
Should this breakout occur, the next potential target for WLD could be around $3.50. However, the proximity of the baseline ascending support suggests a possible retest at the $3 level.
A Bullish Perspective on Worldcoin (WLD)
Zooming into the hourly chart, we can see a different perspective. Since its April 13 low, the price has formed an ascending channel, potentially hinting at the leading diagonal.
Its last uptrend was a five-wave one, and its subsequent downturn maintained a higher low at the 0.786 Fibonacci level. As we saw a bounce, and the price of WLD recovered by nearly 12% since its May 20 low of $4.60, a new uptrend could begin.
If it does, WLD could be eyeing an interaction with the channel’s resistance level at $7 for its next target. That would conclude a larger five-wave move from April 13 and indicate that WLD was in an ascending consolidation phase before a major bullish runup.
Since its release, Worldcoin has had many setbacks revolving around privacy and user data protection. These, in turn, had an impact on the price of WLD. . However, a near 70% fall since its peak could be enough of a decline in one go.
The determining factor between these scenarios would be what happens at its ascending channel’s support. A bounce could mean WLD is set for a 40% recovery, while a breakout wil imply further downside to $3.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
WorldCoin Price Falls 20% – Corrective Pattern Points to More WLD Downside
