Following a period of continuous decline, Worldcoin [WLD] has experienced a positive shift in its fortunes during the last month. The altcoin has shown a consistent upward trend, reaching its highest point in three months.
As of the current moment, Worldcoin is being traded at $2.34, marking an 8.95% increase over the past week. The value of WLD has risen from a low of $1.5 to a recent peak of $2.8 within the mentioned timeframe.
Despite these positive movements, there has been a notable increase in the transfer of WLD to various exchanges, sparking speculation about a potential market top.
Surge in Worldcoin Whale Transfers to Exchanges
Reports from Santiment reveal that the top 100 Worldcoin wallets have shifted $2.3 million or 0.16% of the total WLD supply to Bybit. This transaction volume marks a significant increase and is currently the highest in recent times.
The sudden influx of WLD into exchanges raises concerns about a possible market top, indicating a potential downturn. Large transfers to exchanges often trigger anxiety among retail traders as it signals a lack of confidence in the future value of the cryptocurrency.
Impact on Worldcoin’s Price (WLD)
While substantial transfers usually have an immediate impact on prices, the current scenario suggests otherwise. Despite the increased activity, Worldcoin’s value remains stable at the moment. However, there is a concern that these transfers could be precursors to a market correction.
In general, an increase in the supply of a cryptocurrency on exchanges is often interpreted as bearish sentiment, particularly among major holders.
The outflows from large holders have seen a notable surge, reaching a peak of 62.25 million according to IntoTheBlock. This indicates that significant holders are closing their positions, likely to capitalize on the recent surge in prices.
Moreover, Worldcoin’s MVRV long/short difference has declined recently, displaying a negative value of -7.67. This suggests a decreased confidence in long-term holding or a higher probability of major holders selling their assets.
Therefore, if both short-term and long-term holders are experiencing reduced profitability, it could result in an oversupply in the market leading to price declines.
The rising NVT ratio (with circulation) also hints at a potential market correction. This indicator warns of a possible pullback, indicating an overly optimistic pricing of the asset without solid transactional support.
In conclusion, the movement of assets by large holders to exchanges signifies lowered optimism and a potential sell-off, which could instigate volatility. An oversupply in the market typically leads to price drops.
If this trend persists, Worldcoin (WLD) might drop to $2.1. However, if the market absorbs the selling pressure from these wallets, the cryptocurrency could reclaim $2.6 in the short term.