Altcoin
Worldcoin – Examining the impact of latest token unlocks on WLD’s price action
Posted:
Journalist
- WLD’s long/short ratio stood at 1.03, indicating strong bullish sentiment among traders.
- WLD could soar by 60% to hit the $4.22 level if it closes a daily candle above the $2.70-level
WLD, the native token of Worldcoin, appeared poised for a price decline due to its upcoming token unlock at press time, with the same scheduled for between 05 January and 12 January. In fact, recently, a blockchain-focused social media platform made a post on X (formerly Twitter) stating that Worldcoin is set to unlock a significant 37.23 million WLD tokens, worth nearly $90.09 million.
Will WLD’s price fall?
This unlock creates selling pressure due to the amount of circulating supply it will release. Data revealed that these substantial tokens account for nearly 4.5% of the total circulating supply. Based on historical data, such token unlocks have historically led to selling pressure and bouts of price depreciation.
WLD’s current price momentum
Right now, the overall crypto market sentiment seems a bit confusing, as while Bitcoin (BTC) has gained impressive upside momentum, other cryptocurrencies seem to be struggling.
WLD appeared to be unaffected by the confusion though, soaring by 7.5% in 24 hours at press time. Additionally, this price surge seemed to have attracted traders and investors, leading to an 85% hike in trading volume, according to CoinMarketCap.
Bullish on-chain metrics
According to on-chain analytics firm Coinglass, intra-day traders seem to be more optimistic about this price surge. In the last 24 hours, intra-day traders increased their positions, with data showing that WLD’s Open Interest rose by 27%.
The WLD long/short ratio stood at 1.03, indicating strong bullish sentiment among traders. Data further highlighted that 51.5% of top traders held long positions, while 48.5% held short positions.
Source: Coinglass
WLD technical analysis and key levels
According to AMBCrypto’s technical analysis, WLD seemed to be facing resistance at a horizontal level of $2.55 and the 200 Exponential Moving Average (EMA) on the daily timeframe. However, the price was struggling to breach this hurdle and continue its upside momentum.
Source: TradingView
Based on its recent price action, if WLD breaks the resistance level and closes a daily candle above the $2.70-level, it is highly probable that it will soar by 60% to hit the $4.22 level in the future.
At the time of writing, WLD’s Relative Strength Index (RSI) was well below the overbought area – A sign that the token has enough room for further rally in the short-term.
