- WLD prices recorded double-digit gains during the last trading session.
- Futures traders are not convinced by recent price movements.
World Coin Earlier this week, altcoins began a new token unlock, an event that often provokes a big reaction in the market. However, the price reaction of altcoins was muted. In fact, despite the token unlock, the price movement was not large enough to change the overall sentiment of traders in a positive way.
This cautious or negative sentiment was especially evident in the futures markets.
World Coins Unlocking Starts
Tools for Humanity (TFH), the development team behind the WorldCoin Project, recently announced significant changes to the native token unlocking schedule. World Coin (WLD).
Detail is Blog Post The July 16 announcement stated that the initial plan was for the unlocking period to be three years, but this timeline has now been extended, with 80% of the WLD tokens held by team members and investors to be accessible over a five-year period starting July 24, 2024.
Under the new arrangement, the unlocking of these tokens will be done in stages over a four-year period, to be completed by the end of July 2028. This extended timeline is likely intended to control market supply and stabilize token prices by preventing a sudden influx of large amounts of tokens into the market.
How did Worldcoin respond?
World Coin The past week has seen a series of fluctuations in market performance.
Initially, the token was on a downward trend for over 7 days. However, on July 24th, coinciding with the start of the token unlocking event, WorldCoin recorded a small increase of 1.32%, raising the price from around $2.1 to $2.2. The next day, the token fell by over 4% before falling back to $2.1 again.
Despite these fluctuations, a significant positive shift occurred on July 26. According to AMBCrypto analysis, the price of WLD increased by 11.74% to the level of $2.3. This upward trend continued slightly, with the price reaching about $2.4, another increase of more than 1%.
However, despite these gains, the trend is yet to turn bullish.
Additionally, technical analysis highlights that the short-term moving average (yellow line) still poses immediate resistance at around $2.7 to $3, overcoming this level will be crucial for the token to establish a stronger bullish trend.
Source: TradingView
Moreover, the Relative Strength Index (RSI) is hovering near the neutral line, suggesting that the asset is on the verge of entering bullish territory (depending on the sustainability of the recent positive trend).
WLD traders express negative sentiment
analysis World Coin (WLD) Trading Index Coin Glass Bearish sentiment among traders is evident as evidenced by the current long/short ratio and funding rate trends.
Specifically, the long/short ratio suggests that there were more short positions in WorldCoin than long positions — simply put, traders are betting on the token’s price to fall rather than rise.
Source: Coinglass
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Finally, WLD’s funding rate has been trending below zero, at around -0.058% at the time of writing.
A negative funding rate typically means that short sellers are paying longs to keep their positions open, which is common in markets where there is a consensus that prices are heading for a decline. This situation seems to indicate that sellers are taking control of the market and putting downward pressure on the token’s price.
