Sep 26, 2024

6thTrade

In recent days, AI-driven cryptos have dominated the top gainers list, and today, Worldcoin’s WLD has joined the ranks, surging over 15%. This pump has propelled WLD’s price above $2 for the first time since late July, sparking excitement in the market. However, there are reasons for investors to exercise caution despite this upward momentum. $WLD

The Unlock Schedule Dilemma

One major factor that could put downward pressure on WLD's price is its upcoming token unlock schedule. Here’s what’s on the horizon:

  • Start Date: The unlocking process begins on July 24, 2024.

  • Daily Unlock: 2 million WLD tokens will be unlocked per day, a reduction from the originally planned 3.3 million daily tokens.

  • Duration: This unlock process will span four years, ending in July 2028.

This revised unlock schedule means around 80% of WLD tokens held by team members and investors will gradually enter the market. Such a substantial increase in token supply could weigh on the price, despite any short-term bullish activity.

Worldcoin (WLD) Price Analysis

Recently, a viral WLD chart posted by World of Charts analyst caught the attention of the crypto community, offering valuable insights into WLD’s price movement. Here's a breakdown:

  • Early 2024 Rally: WLD surged to around $9 before entering a downtrend, forming multiple lower highs and lower lows through the summer.

  • Support Levels: The price found support near $1.25 during this downtrend.

One key observation from the chart is a bullish divergence between WLD’s price and the RSI (Relative Strength Index). While the price kept making lower lows, the RSI started forming higher lows, indicating that the selling momentum was weakening. This often signals a potential reversal.

A couple of days ago, the price broke out of a falling wedge pattern, with WLD hovering around $1.52—a critical level marking its attempt to regain higher ground. The chart’s measured move approach for wedge patterns suggested an ambitious price target of $6.88, representing a potential 285% increase from the breakout level. The RSI was near oversold territory, further supporting the bullish case, as oversold conditions frequently precede trend reversals.

Price and Volume Analysis

The first chart shows the WLD price experiencing a strong surge after months of downward or flat movement. This sharp rise is accompanied by increased volume, a typical sign that new liquidity is entering the market. With WLD now trading above $2 for the first time since July, it confirms that the token has entered a new bullish phase.

What stands out in this data is that the recent volume spike is one of the largest observed in the past few months. This implies strong buyer activity, potentially driven by both retail and institutional players. With the price stabilizing in this higher range, $2.50 and $3.00 seem likely as short-term resistance levels.

Open Interest and Price Correlation

The second chart, showcasing open interest alongside price movement, further supports the bullish outlook. Open interest has increased alongside the price, indicating more traders are taking positions in the market, likely speculating on continued upward momentum.

Historically, when price and open interest move in tandem, it signifies a solid trend supported by market participants. The spike in both metrics over the past few days signals that market confidence is building around WLD, reinforcing the notion that the current rally could sustain itself in the short to mid-term.

Fast Forward to Today: Momentum Gaining Strength

Fast forward to today, and many of these predictions seem to be playing out. WLD has already surged 15%, with the price currently around $2.11. The bullish breakout from the falling wedge is gaining momentum as buyers drive the price higher.

Looking ahead, key resistance levels to watch include $2.50 and $3.00, which may act as psychological barriers. Should WLD continue its upward trajectory, the next potential target lies between $4.00 and $5.00, with the ultimate goal being the chart’s target of $6.88.

Conclusion

While the current pump in WLD is promising and technical indicators suggest more upside potential, the upcoming token unlock schedule poses a risk that investors need to consider. Nevertheless, with strong market momentum and bullish chart patterns, Worldcoin is undoubtedly one to watch in the coming months.

#6thTrade #Market_Update #WLD/USDT⚡️⚡️


Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.