Worldcoin’s native token, WLD, could be heading for turbulent times as a significant token unlock looms on the horizon. Scheduled between 5 January and 12 January, this event will release 37.23 million WLD tokens, worth approximately $90.09 million, into circulation. Representing 4.5% of the total circulating supply, this influx is likely to exert downward pressure on WLD’s price, as historical data suggests such unlocks often lead to selling pressure and price depreciation.
WLD’s Price Momentum Defies Odds
Despite the uncertainty surrounding the token unlock, WLD recently demonstrated impressive resilience. Over the past 24 hours, it surged by 7.5%, with trading volume skyrocketing by 85%, according to CoinMarketCap. This uptick suggests renewed interest from traders and investors, even as the broader cryptocurrency market grapples with mixed sentiment.
Bitcoin’s recent bullish momentum hasn’t lifted the entire market, leaving several altcoins struggling. However, WLD’s short-term rally indicates potential optimism among market participants.
Bullish Indicators: Optimism Among Traders
On-chain data from Coinglass reveals an increase in Open Interest for WLD, rising 27% in the last 24 hours. The long/short ratio of 1.03 underscores the bullish sentiment, with 51.5% of top traders holding long positions, suggesting confidence in further upward price action.
Technical Analysis and Key Levels
WLD is currently testing a critical resistance level at $2.55, aligned with its 200-day EMA. Breaking and closing above the $2.70 mark could propel WLD toward a 60% rally, potentially hitting $4.22. However, failure to overcome this resistance might result in a sharp decline post-token unlock.
Encouragingly, WLD’s RSI remains below the overbought zone, signaling room for further gains in the short term.
Also Read: Germany Cracks Down on Worldcoin: BfDI Orders Deletion of User Iris Scans Over GDPR Violations
The upcoming token unlock presents a double-edged sword for WLD. While the event introduces potential selling pressure, bullish sentiment and strong technical indicators suggest that the token might weather the storm. Investors should monitor resistance levels and market reactions closely as the unlock date approaches.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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