š Worldcoin Rockets 90%: Can It Sustain Momentum or Will Resistance Hold?
Worldcoin [WLD] experienced a significant rebound, surging 90% from its recent low of $1.72. This unexpected rally triggered a substantial number of short liquidations as traders who anticipated a continued downtrend faced a short squeeze. With theĀ token unlocksĀ for early investors and team members set to commence on July 24th, the market anticipates a potential influx of supply.
Despite the sharp rebound, WLD struggled to break through the critical $3 resistance zone. Although the tokenĀ rallied nearly 100%Ā over the past week, it has not convincingly cleared the recent lower high of $3.2. As of this writing, WLD has declined by 6.01% in the past day to trade at $2.71.
After the price surge, many Worldcoin holders sought to secure their gains, evidenced by a notable increase in active deposits. The metric, reaching a four-month high, underscored a trend of profit-taking among retail investors.
Contrary to retail investorsā actions, Worldcoin whales adopted a different strategy. Addresses holding between 1 million and 10 million WLD accumulated approximately 13 million WLD, valued at over $36 million, within the same three-day period. Historically, such accumulation has triggered price recoveries, as seen in February and May.
šø Allegations of Market Manipulation
Crypto influencer Defi SquaredĀ has been vocalĀ on social media platform X, asserting that Worldcoinās tokenomics are designed to manipulate the market. He highlighted that only 2.7% of the total 10 billion WLD tokens are set to be released into circulation. According to Defi Squared, this limited float is a deliberate attempt by the Worldcoin team to control the tokenās price.
At its initial launch in 2023, Worldcoin released 140 million WLD tokens. Currently, 278 million tokens are in circulation, with a fully diluted valuation (FDV) of $26 billion. Defi Squared argues that the high FDV is a strategic move to influence market perception and inflate the tokenās value.
