Analysts Warn Against Shorting WorldCoin’s Token, Anticipate WLD Price Breakout – But Here’s the Catch

Crypto analyst LunarOX has warned against shorting WorldCoin's WLD token. His post highlights the billions of trading volumes on WLD futures contracts

WorldCoin’s WLD token has seen massive price gains following its recent unlock. However, some analysts are warning against shorting the asset due to the high volumes of short positions in the futures market.

Key Points

Analyst LunarOX highlights the large volumes of short positions on WLD futures contracts.

According to the post, a market maker would need higher trading volumes to sell all the recently unlocked WLD tokens.

Therefore, the analyst suggests that the price is likely to rise, and many people taking short positions will likely face liquidation.

Stop shorting @worldcoin!

Now there are billions of trading volumes on $WLD futures contracts (these are all short positions)

In order for the market maker to sell all WLD unlocks, he needs a high volume to buy

Liquidation of shorts => buy back $WLD

#WLDUSDT pic.twitter.com/oT4TwY8ZSl

March 23, 2024 - LunarOX (Ἦ ΟX) (@LunarOX_real)

WorldCoin’s WLD token has seen massive price gains following its recent unlock. However, some analysts are warning against shorting the asset due to the high volumes of short positions in the futures market.

After the recent unlock, many people are now paying attention to $WLD. Most of the trading volumes on the futures contracts are shorts.

If the market maker wants to sell all the unlocked $WLD, he will need a higher volume to buy. This will push the price of $WLD higher and shorts will be liquidated.

Chart analysis shows that the price of WLD has dropped to a critical support. This support previously acted as resistance, which bounced off the price a couple of times.

Now that the price is reaching this support again, there is a high probability that it will hold the price once more. A bounce from this support could trigger a major price rally and a breakout from the falling wedge.

However, I am also open to the possibility of a break below the support. If there is a break below the support, we can expect the price to reach further lows.

In essence, the support needs to hold for a short-term price breakout.

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