Worldcoin [WLD] has experienced a notable shift in its trajectory following a period of decline on the price charts. The altcoin has recently demonstrated a significant uptrend, reaching its highest point in three months.
Currently, Worldcoin is being traded at $2.34, reflecting an 8.95% increase over the past week. Throughout this timeframe, WLD has surged from a low of $1.5 to a peak of $2.8.
Despite the positive price movement, there has been an influx of WLD deposits onto exchanges, sparking speculations about a potential price peak.
Rise in Worldcoin Whale Deposits on Exchanges
Reports from Santiment indicate that the top 100 Worldcoin wallets have transferred $2.3 million, equivalent to 0.16% of the total supply, to Bybit. This transaction volume represents one of the largest amounts recorded recently.
The increase in WLD deposits on exchanges heightens the likelihood of an impending price peak, signaling a probable downturn. Such transfers from large holders to exchanges often instill fear among smaller traders, indicating a lack of confidence in the cryptocurrency’s future value.
Impact on the Future of WLD
While significant transfers typically trigger immediate price reactions, WLD has managed to sustain its positive momentum thus far. However, concerns persist that these recent transfers could serve as precursors to a downward trend.
Historically, an influx of supply into exchanges tends to signal bearish sentiment, particularly among major holders.
Data from IntoTheBlock reveals a substantial surge in outflows from large wallets, reaching a peak of 62.25 million. This suggests that significant holders have been closing positions to capitalize on recent price surges.
Furthermore, Worldcoin’s MVRV long/short difference dropped in the past week, displaying a negative reading of -7.67. This indicates a reduced confidence in long-term accumulation or an increased likelihood of major holders offloading their assets.
Consequently, if both short-term and long-term holders are less bullish, an oversupply in the market may lead to price declines.
Another concerning factor is the rising NVT ratio (with circulation) for Worldcoin. A higher NVT ratio suggests a potential market correction, indicating that the asset’s current pricing may not align with transactional demand.
In essence, the transfer of assets by large holders to exchanges implies a decrease in optimism and potential selling pressure, which could induce market volatility. An oversupply typically results in price depreciation.
If this trend persists, WLD is anticipated to drop to $2.1. On the contrary, if the market absorbs the selling pressure from these wallets, the altcoin might rally back to $2.6 in the short term.