Worldcoin is facing a notable downturn as new legal challenges emerge in Kenya and Indonesia.

After experiencing a robust increase in April, the token has retraced some of its gains, falling 7% in a single day and over 22% this week. Despite the price decline, trading volume for Worldcoin (WLD) rose by 64%, indicating that traders are quickly adjusting to market changes. This situation arises amid growing scrutiny of Worldcoin from global regulators.

In a recent decision, the Worldcoin Foundation was ordered by a Kenyan High Court on May 5 to erase all biometric data collected in the country, including facial and iris scans. Local news outlet Kenyans.co.ke reported that the ruling also prevents the project from collecting any new data.

The ruling criticized Worldcoin’s method of offering crypto incentives in exchange for sensitive data. This action followed a lawsuit from the Katiba Institute, which contested the company’s handling of personal data gathered through its app and orb devices.

Additionally, Indonesia has halted Worldcoin’s digital identity platform, World ID, due to legal violations. According to a May 4 statement from the Ministry of Communication, one of the entities operating under the Worldcoin brand was improperly registered. As a result, authorities have suspended Worldcoin’s certification and summoned relevant parties for further investigation.

From a technical perspective, WLD is currently trading around $0.88, down from its April peak of $1.20. The price has stabilized since late April, sitting just above a support level near $0.86.

However, the token is exhibiting signs of short-term weakness after dropping below the 20-day moving average. The relative strength index has declined from overbought levels to 47, indicating reduced buying pressure, although it hasn’t completely entered bearish territory.

The next key levels to watch are $0.80, or potentially $0.75, if WLD fails to hold support around $0.86. Conversely, a recovery could push the price back toward the $0.94 resistance level, but regaining bullish momentum may require strong trading volumes and positive news.

The future of Worldcoin now depends on its capacity to navigate escalating regulatory hurdles in crucial markets.