WLD, the native token of Worldcoin, is currently in an intriguing position as traders and investors anxiously await the impact of recent token unlocks. With a scheduled release of approximately 37.23 million WLD tokens, valued at around $90.09 million, between January 5 and January 12, many are left wondering: what will happen to the price of WLD?
At first glance, the unlock could bring some challenges, possibly leading to selling pressure as the circulating supply increases. This upcoming release accounts for about 4.5% of the total supply, and historical trends suggest that such significant token unlocks often trigger bouts of price depreciation. So, will WLD’s value fall?
Interestingly, despite potential concerns surrounding these token unlocks, WLD has shown positive price movement. Currently, the overall cryptocurrency market sentiment is a bit of a mixed bag. While Bitcoin (BTC) enjoys upward momentum, many altcoins, including WLD, manage to stand out. WLD has already seen a 7.5% increase in just 24 hours, sparking a surge in trading volume that soared 85%, according to CoinMarketCap. This uptick has drawn more attention from traders optimistic about the short-term outlook.
According to on-chain analytics from Coinglass, there’s a prevalent bullish sentiment among traders. The long/short ratio for WLD is currently sitting at 1.03, reflecting more traders holding long positions (51.5%) compared to those going short (48.5%). This optimism is echoed by an increase in Open Interest by 27% among intra-day traders willing to bet on WLD’s price rally.
When examining the technical analysis, WLD faces some key resistances around the $2.55 mark and the 200 Exponential Moving Average (EMA) on the daily timeframe. However, if WLD manages to close a daily candle above the $2.70-level, projections indicate a potential surge of up to 60%, bringing the price to around $4.22.
As of now, the Relative Strength Index (RSI) for WLD is below the overbought territory, suggesting that the token still has room for further appreciation in the short term.
With traders closely monitoring these developments, the coming days will be critical in determining if WLD can thrive despite the looming challenges posed by the token unlocks. Whether you’re a seasoned investor or just dipping your toes into Worldcoin, understanding these dynamics could help you make informed decisions. Keep an eye on WLD; the situation is undoubtedly one to watch!
