As of the current timeline, the imminent token unlock for WLD, the indigenous token of Worldcoin, suggested a potential decline in price. A recent X post (formerly Twitter) revealed that Worldcoin is gearing up to release a substantial 37.23 million WLD tokens valued at approximately $90.09 million.
Potential Price Decrease for WLD?
The forthcoming token unlock is anticipated to introduce selling pressure due to the increased circulating supply. These considerable tokens constitute about 4.5% of the total circulating supply and historically, such events have led to instances of selling pressure and consequent price devaluation.
Current Momentum of WLD’s Price
The current sentiment in the cryptocurrency market appears somewhat perplexing, with Bitcoin (BTC) showing a remarkable uptrend while other digital assets face challenges.
Interestingly, WLD seems to be thriving amidst this ambiguity, witnessing a 7.5% surge in value within 24 hours. Furthermore, this uptick attracted traders and investors, resulting in an 85% increase in trading volume, as reported by CoinMarketCap.
Positive On-Chain Indicators for WLD
According to insights from on-chain analytics provider Coinglass, short-term traders are displaying optimism regarding this price surge. In the past day, intra-day traders have expanded their positions, with data indicating a 27% rise in WLD’s Open Interest.
The long/short ratio stands at 1.03, reflecting robust bullish sentiment among traders. Notably, 51.5% of top traders have long positions, while 48.5% maintain short positions.
Technical Analysis and Critical Levels for WLD
Per the technical analysis by CryptoCrypto, WLD is currently encountering resistance at the $2.55 horizontal level and the 200 Exponential Moving Average (EMA) on a daily basis. Despite efforts, the price is struggling to surpass this barrier and sustain its upward trajectory.
Considering recent price movements, a breach of the resistance level with a daily candle closure above $2.70 could potentially drive a 60% surge, propelling WLD towards the $4.22 mark in the foreseeable future.
At the time of writing, WLD’s Relative Strength Index (RSI) indicates ample space for a further short-term rally, given that it remains well below the overbought region.