Worldcoin (WLD) witnessed significant profit-taking by whales following its impressive 22% recovery. Analytics platform Santiment reported a massive sell-off, with nearly 5 million WLD tokens (worth over $9 million) hitting centralized and decentralized exchanges. This led to a notable spike in Exchange Inflows, signaling the beginning of a profit-taking trend that has been building since late December.
The increased supply on exchanges, shown by the steadily rising Supply on Exchanges indicator, suggests mounting sell pressure. In just January alone, supply on exchanges rose from 126 million to 141 million WLD tokens, highlighting short-term selling activity. However, a slight decrease in the supply outside exchanges—dropping from 9.87 billion to 9.85 billion tokens—indicates a slight dip in demand for WLD, which could hinder its short-term recovery.
Network activity also mirrored this sentiment, with daily active addresses declining, further signaling a drop in market interest. Despite these bearish signs, WLD’s weighted market sentiment remained near neutral, suggesting a balanced outlook with no strong conviction from traders either way.
Looking ahead, WLD’s price is closely testing the $2 zone, a key demand level since mid-December. If this support holds, it could act as a springboard for further gains, with potential targets at $2.5 or even $2.8—where significant resistance lies. However, this recovery scenario hinges on improved demand and a more positive shift in market sentiment, particularly if the RSI (Relative Strength Index) shows signs of strengthening.
The post-inauguration altcoin rally could be a catalyst for WLD’s recovery, but whether the token can sustain upward momentum depends on a resurgence in demand and more positive network activity. For now, traders and investors will need to watch closely as WLD battles through short-term profit-taking pressure.
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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