Worldcoin (WLD) experienced a dramatic price drop of over 28% on June 6, falling from above $0.56 to approximately $0.40, following news that Arthur Hayes, co-founder of BitMEX, liquidated his entire WLD position. This sell-off erased a significant portion of the token’s recent gains, leaving it about 35% below its recent peak near $0.62. Hayes announced the move on X, stating the chart was moving in the wrong direction and that he was out of the trade.
Hayes had previously expressed optimism about Worldcoin’s potential to benefit from AI-related enthusiasm and upcoming IPOs, but he reversed his stance, citing a changing macroeconomic environment influenced by higher energy prices from the Iran conflict and growing uncertainty around AI investments. This decision followed his recent exits from HYPE, NEAR, and Zcash, signaling a broader shift in his portfolio strategy.
The sharp decline occurred amid weakening speculative sentiment across crypto markets, with Bitcoin briefly slipping below $60,000, triggering risk reduction among traders and heavy liquidations in altcoins. On the technical side, WLD’s daily chart shows a retreat after failing to sustain above the $0.53 breakout area. However, the token remains above a key support zone at $0.35, a level that previously acted as resistance before turning into support. A breakdown below this level could expose the next major support near $0.23, where WLD formed its spring bottom.
Momentum indicators offer a mixed outlook: the MACD remains in bullish territory with the signal line above zero, while the Aroon indicator shows a strong uptrend with Aroon Up near 86 and Aroon Down at 0. Volume surged during the recent rally from $0.23 to over $0.60, suggesting the correction may be part of a typical profit-taking phase.
Liquidation data from CoinGlass highlights dense liquidity clusters between $0.45 and $0.48 as the first resistance zone for any recovery, with larger pools near $0.59 and $0.60. On the downside, leveraged positions are concentrated around $0.38 to $0.40, an area already breached, increasing the risk of further volatility. Macro conditions remain challenging, with stronger U.S. labor data reducing expectations for Fed easing and geopolitical tensions pushing energy prices higher, weighing on speculative assets.
For bulls, defending the $0.35 support is crucial to maintain the higher-low structure established since April and keep hopes of a rebound toward $0.45 alive. A breakdown below this level could pave the way for a deeper retracement toward the $0.23 base that launched Worldcoin’s recent rally.