Worldcoin (WLD) Whales Dump 5M Tokens Worth $9M, Stalling Recovery Prospects

On 17 January, Worldcoin [WLD] recorded massive profit-taking by whales to capitalize on its recent 22% recovery gains.

Worldcoin (WLD) price action last week was defined largely by profit-taking activity from whales, especially in light of the token’s 22% recovery gains over the past two weeks.

In fact, as noted by analytics platform Santiment, WLD was among those that saw a +$1 million sell-off on Friday, 17 January.

To put things into perspective, nearly 5 million WLD tokens (4.73 million, to be exact) were dumped on centralized and decentralized exchanges, as highlighted by the spike in Exchange Inflows (red).

This also aligns with the sell pressure that has been building up since late December, as shown by the steadily rising Supply on Exchanges indicator (yellow).

In January alone, supply on exchanges has risen from 126 million to 141 million WLD coins, indicating strong profit-taking activity and short-term supply pressure.

Demand for WLD Stalls

It is also important to note that the supply outside exchanges (blue line) dropped slightly over the same period, decreasing from 9.87 billion to 9.85 billion.

This suggests that demand for WLD fell marginally, which could potentially limit the token’s recovery in the short term.

The bearish pulse is further evident on the network activity front. Daily active addresses (white) also retreated lower, highlighting muted market interest in the altcoin.

However, the weighted market sentiment for WLD is currently at a neutral level, indicating that the market is 50/50 on the token’s price prospects.

A positive surge in weighted sentiment could indicate higher chances of recovery, especially ahead of the anticipated post-inauguration altcoin rally.

WLD Price Poised for Springboard?

At the time of writing, WLD is retesting the $2 price zone, which has served as a key demand area since mid-December.

If this level holds, the zone could act as a springboard for an extended recovery towards $2.5 or the overhead supply at $2.8.

However, this recovery projection is only valid if the current flat demand (as shown by the RSI) improves.