The price of Worldcoin (WLD) has recently faced a significant decline, failing to rebound from the $2.00 support level. Currently, the altcoin is trading at $1.65, and given market conditions, consolidation seems to be the next likely step.
Investors are now considering whether Worldcoin is a good addition to their portfolios this October, but the market sentiment around the token remains cautious.
Why Worldcoin May Not Be the Best Choice
According to the MVRV (Market Value to Realized Value) indicator, which measures the difference between market value and realized value, #Worldcoin currently shows a rather negative outlook. High positive values typically indicate profits for long-term holders, which is a sign of stability. Conversely, deeply negative values suggest that short-term holders are profiting, which often leads to increased selling pressure.
Currently, the MVRV is at -24%, showing that short-term holders are making profits. This is considered a #bearishsignal because short-term investors tend to sell quickly, which increases the likelihood of further price declines.
This shift in sentiment, driven by short-term profit-taking, indicates that Worldcoin may face difficulties in recovering its price in the near future. The bearish signals are causing many investors to remain cautious about adding #WLD🔥🔥🔥 to their portfolios.
Additionally, the broader macroeconomic environment for Worldcoin isn’t performing much better. The Sharpe Ratio, a measure of risk-adjusted returns, is at its lowest point since the altcoin’s inception. This suggests that the risks associated with investing in $WLD currently outweigh the potential returns, making it a less attractive option for investors.
The low Sharpe Ratio indicates that Worldcoin may not be a good investment at the moment. The current market conditions could lead to further losses. Investors are advised to be cautious before entering the market under these circumstances, as WLD may continue its downward trend unless significant bullish catalysts emerge.
WLD Price Prediction: Challenges Ahead
The price of Worldcoin has dropped 24% in recent days and is now trading at $1.65. Given the current market sentiment and macro indicators, it is likely that WLD will remain below the $2.00 level in the near future.
Additionally, the Altcoin faces resistance at the $1.74 mark, which may not be a major hurdle, but failure to break through it could lead to further declines. If bearish conditions persist, the price could drop toward $1.34, which is the lower boundary of the consolidation range between $2.00 and $1.34. This scenario makes Worldcoin less appealing to investors looking for promising altcoins in October.
However, if there is a shift in market conditions and WLD’s price surpasses the $1.74 level, the altcoin could rise above $2.00. In such a case, the current bearish outlook would be invalidated, and WLD could potentially push toward $2.50.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
