Significant WLD Token Unlocks Could Influence Its Price
Worldcoin, with its native token WLD, faces potential price pressure due to upcoming token unlocks. Scheduled between January 5 and 12, the unlock will release 37.23 million WLD tokens worth approximately $90.09 million. This move could significantly impact market dynamics.
According to published data, this amount represents 4.5% of the total circulating supply, potentially creating selling pressure as circulating supply increases. Historically, similar unlock events have led to price declines due to market oversupply.
Current Price Movement of WLD
WLD Resilient Despite Unlock Concerns
While many cryptocurrencies are experiencing volatility, WLD stands out as an exception. At the time of writing, the token's price rose by 7.5% in the past 24 hours. This growth has attracted traders, leading to an 85% increase in trading volume, according to CoinMarketCap.
This upward trend suggests that WLD retains investor confidence despite concerns over token unlocks.
Bullish On-Chain Signals
Traders Expect Further Growth
According to data from Coinglass, WLD saw a 27% increase in open interest, reflecting optimism among intraday traders. The long/short ratio is at 1.03, indicating a majority of long positions.
Additionally, 51.5% of top traders hold long positions, signaling their confidence in further price increases.
Technical Analysis and Key Levels
Key Resistance Levels and Potential Growth
Technical analysis reveals that WLD currently faces resistance at $2.55 and the 200-day exponential moving average (EMA). However, if the price breaks through this barrier and closes above $2.70, there is a strong likelihood it could increase by 60% to reach $4.22.
As of now, the Relative Strength Index (RSI) for WLD remains well below the overbought zone, suggesting room for further growth in the short term.
Conclusion
Despite the risks posed by the upcoming token unlocks, current technical and on-chain signals indicate that WLD has the potential to sustain its growth. It will be crucial to monitor whether WLD surpasses the $2.70 resistance level and capitalizes on this momentum to further strengthen its position.
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