Worldcoin [WLD] witnessed a 3.5% rise in Open Interest in the futures market, however, the price took an 8.2% dip over the last week. On-chain data indicated a slowdown in activity over the past fortnight.
Worldcoin entering a phase of distribution
Between September 9th and October 15th, Worldcoin experienced a consistent growth in network expansion. This particular metric gauges the daily creation of new addresses on the network, showcasing an increase in adoption and interest.
Concurrently, the daily number of active addresses also showed a continuous uptrend during this period. The scenario took a turn in the latter part of October as both activity metrics suddenly declined, consequently impacting the token’s price negatively.
Although transaction volume decreased, it remained higher than the mid-September levels.
The average age of coins recorded a significant drop on October 15th following the token’s rejection at the $2.6 mark. The surge in dormant circulation indicated a series of token transfers among different addresses.
Subsequently, the average coin age has not yet rebounded, hinting at a distribution phase post-rejection. The negative 30-day MVRV suggested that short-term holders were experiencing an average loss of 10.79%.
Worldcoin’s potential for sustained upward movement
From October 10th onwards, Bitcoin [BTC] has soared by 19.38%, currently resting just 2% below its all-time peak of $73,737. Over the same period, WLD surged by 22.35%. Moreover, bulls successfully defended crucial Fibonacci levels at $1.77 and $1.96.
While the price action appeared optimistic, the On-Balance Volume (OBV) painted a less encouraging picture. Throughout October, it displayed a pattern of lower highs and lower lows, signaling decreasing demand. As of the latest data, the Relative Strength Index (RSI) reading of 38.6 indicated a bearish momentum.