Worldcoin price has been on a strong uptrend, briefly reaching $2 earlier this week. However, despite the impressive rise, the sustainability of this rally is in question.
As the cryptocurrency landscape continues to evolve, Worldcoin (WLD) recently captured significant attention by rising sharply. However, market watchers are beginning to question whether this surge can be maintained, particularly as larger holders start cashing out their profits.
Worldcoin Whales Sell
In the past 48 hours, significant movements among large Worldcoin holders, often referred to as “whales,” have made headlines. Addresses holding between 1 million to 10 million WLD tokens have collectively sold more than 49 million tokens, amounting to over $85 million. This trend reflects a clear profit-taking strategy among these influential market players.
Despite this sell-off, these whale wallets retain control of nearly 938 million WLD tokens. This substantial holding means they still play a pivotal role in dictating market trends. If this cohort continues to liquidate holdings, the resultant selling pressure might erase the bullish sentiment from smaller traders, casting doubt on WLD’s ability to hold its recent gains.
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Worldcoin’s macro momentum is showing signs of strain as technical indicators flash caution. The Relative Strength Index (RSI) currently rests in the overbought territory, indicating that the asset may have reached a saturation point. Such indicators often precede market corrections as investors look to exit at peak prices.
This overbought reading suggests that the recent selling by whales was not a random occurrence but rather aligned with broader technical signals. Should the RSI continue to linger in this elevated zone, further profit-taking could follow, leading to a potential price reversal in the near future.
WLD Price May Take A Hit
Currently trading at $1.75, Worldcoin has experienced a remarkable 95% increase over the past week. Yet, it briefly topped $2 during its intra-day performance before failing to maintain that level, indicating that resistance at this point remains strong.
At this moment, WLD is attempting to hold onto the support level of $1.74. However, with the ongoing selling pressure and waning momentum, a drop below this support seems plausible. Scenarios could see the price retreating to $1.54, or even down to $1.33, provided sellers gain the upper hand.
However, if these whales curtail their selling activities and investor sentiment begins to stabilize, Worldcoin price could defy the prevailing bearish trend. A successful breach above $2 could trigger additional bullish momentum, with $2.17 emerging as the next price target and potential invalidation of the bearish outlook.
