Whales Dump Worldcoin [WLD] on Exchanges – Analyzing the Impact

Major profit-taking activity by large holders in Worldcoin [WLD] was observed on 17 January in order to capitalize on the recent 22% recovery in value. Data from the Santiment analytics platform revealed that WLD was one of the cryptocurrencies that experienced a significant sell-off exceeding $1 million on Friday.

A substantial amount of WLD tokens, totaling 4.73 million with a value exceeding $9 million, were liquidated on both centralized and decentralized exchanges, as indicated by the notable increase in Exchange Inflows (depicted in red).

This selling pressure initiated towards the end of December, evident from the consistent growth in the Supply on Exchanges metric (highlighted in yellow).

Within the month of January alone, the supply on exchanges surged from 126 million to 141 million WLD coins – a clear indication of short-term supply strain and profit-taking behavior.

Weakening Demand for WLD

It is noteworthy that the supply outside exchanges (represented by the blue line) slightly declined from 9.87 billion to 9.85 billion during the same period, suggesting a minor dip in the demand for WLD – a shift that could potentially impede the coin’s recovery in the near future.

A similar bearish sentiment was also reflected in the network activity domain, with the number of daily active addresses (depicted in white) experiencing a decline, signaling subdued market interest in the altcoin.

Nevertheless, as of the current moment, the overall market sentiment remained close to neutral levels, indicating a 50/50 stance on the future price movement of WLD.

An optimistic upsurge in market sentiment could imply a higher likelihood of recovery, especially leading up to the anticipated altcoin rally post-inauguration.

That said, Worldcoin [WLD] retested the crucial $2 price range – a significant demand area since mid-December. Should this level hold, it could potentially serve as a support base for a sustained uptrend towards $2.5 or the resistance level at $2.8.

However, the possibility of the projected recovery depends greatly on an improvement in the current tepid demand (as indicated by the RSI).