đ„ Worldcoin (WLD) Drops 24%, But Low Prices Donât Make It a Good Bet
Worldcoinâs (WLD) price has faced significant price pressure recently, failing to bounce off the $2.00 support level. The altcoin is currently trading at $1.65, with consolidation appearing to be the next likely move.
Investors are now assessing whether Worldcoin is a good addition to their portfolio this October, as market sentiment around the token remains cautious.
đž Worldcoin May Not Be the Best Choice
The MVRV (Market Value to Realized Value) Long/Short Difference indicator for Worldcoin is currently signaling a bearish outlook. Highly positive values typically suggest that long-term holders are in profit, a sign of stability. On the other hand, deeply negative values indicate that short-term holders are profiting, which tends to increase selling pressure.
Currently, the indicator is at -24%, showing that short-term holders are seeing profits. These investorsâ profits are a bearish sign, as short-term investors are often prone to selling quickly, increasing the likelihood of a price decline.
This shift in market sentiment, driven by short-term profit-taking, suggests that Worldcoin may struggle to regain upward momentum in the near term. The bearish signals are prompting many investors to remain cautious about adding WLD to their portfolios.
Furthermore, the broader macro momentum for Worldcoin isnât faring much better. WLDâs Sharpe Ratio, an indicator that measures the risk-adjusted returns of an asset, is at its lowest point since the altcoinâs inception. This indicates that the risk associated with investing in WLD currently outweighs the potential rewards, making it a less attractive option for investors.
The low Sharpe Ratio suggests that Worldcoin may not be the best bet at the moment. This is because the current risk environment could lead to further losses. Investors are advised to be wary of entering the market under these conditions, as WLD may continue its downtrend unless significant bullish catalysts emerge.
