The recent price movement of Worldcoin (WLD) has caught the attention of traders and investors, as it has steadily risen back to the $2 mark. Despite this upward momentum, a significant number of WLD holders are still facing losses on their investments. This situation raises the question: could reduced selling pressure among these holders signal a bullish trend for WLD?
Over the past week, WLD has shown an impressive growth of 8.12%. However, the data reveals that approximately 71% of its holders remain in the red, having purchased their tokens at higher prices. This statistic indicates that while the price surge is encouraging, the majority of WLD investors may be hesitant to sell at a loss.
The Historical Break Even Price chart is crucial in understanding the current sentiment among WLD holders. Only 23% of holders are in profit, with around 6% at break-even. This means that a vast majority are currently underwater. As such, many holders may choose to retain their tokens in anticipation of future price increases, thereby reducing the likelihood of heavy sell-offs.
If this sentiment persists, it could create a more favorable environment for continued price gains. A decrease in sell-side activity, combined with stable or increasing demand, has the potential to drive prices higher, setting the stage for a bullish trend in WLD.
Another key factor influencing WLD's price trajectory is its growing presence on social media. The 7-day Moving Average Social Dominance for WLD currently stands at 0.30%, a significant increase from 0.021% just a week ago. This metric measures the proportion of social media mentions related to WLD compared to other assets, providing insights into its market visibility.
The recent funding announcement for OpenAI, coupled with Sam Altman's involvement in both projects, has spurred increased attention on WLD. A rising social dominance often correlates with heightened trading activity, and if WLD continues to capture public interest, this could serve as a catalyst for further price increases.
From a technical perspective, WLD's Exponential Moving Average (EMA) lines appear bullish. All short-term EMAs are currently positioned above the long-term ones, and on October 6, the formation of a golden cross—a bullish indicator—was noted. This suggests the potential for a robust upward trend as the distance between short-term and long-term EMAs widens.
If this upward movement persists, WLD may soon test the $2.18 resistance level. A successful breach of this level could propel WLD as high as $2.47, marking its highest price since July 2024 and representing a potential 23.5% gain from current levels.
Conversely, if the trend reverses, WLD has established support at $1.59, $1.51, and $1.38. A significant price drop could occur, with a potential decline of up to 31% from current levels if these support points fail to hold.
The current landscape for Worldcoin suggests a potential bullish trend fueled by reduced selling pressure from holders and an uptick in social media buzz. As investors navigate the market, understanding both the sentiment among holders and technical indicators will be crucial in forecasting WLD's price movements. Whether WLD can maintain its upward trajectory remains to be seen, but the signs are leaning positively for now.
October 2024, Cryptoniteuae