Worldcoin (WLD) Price Prediction: Can WLD Maintain Its Bullish Momentum Amid Token Unlock?

Worldcoin’s (WLD) native token has been in the spotlight recently, with its price action showing mixed signals amidst a major token unlock. As of January 7, 2025, the upcoming unlock of 37.23 million WLD tokens—valued at approximately $90.09 million—has raised concerns over potential selling pressure. However, despite these worries, WLD has shown impressive price movement, suggesting a possible bullish turn. Let’s take a closer look at what these token unlocks mean for WLD’s price and its future prospects.

Token Unlock and Potential Selling Pressure

Worldcoin’s upcoming token unlock, scheduled between January 5 and January 12, 2025, will release a substantial portion of its circulating supply. The 37.23 million tokens account for nearly 4.5% of the total circulating supply, which could lead to significant selling pressure in the short term. Historical data shows that such token unlocks often result in price depreciation as the increased supply overwhelms demand.

Despite this, the overall crypto market sentiment has been somewhat mixed. While Bitcoin (BTC) has gained considerable upside momentum, other cryptocurrencies, including WLD, have been facing some challenges. This could make the token unlock more impactful for Worldcoin, depending on how market participants react to the increased supply.

WLD’s Price Momentum and Market Sentiment

Interestingly, WLD has remained somewhat unaffected by the general market confusion, with the token seeing a notable 7.5% price surge in the last 24 hours. This surge is particularly noteworthy considering the overall mixed sentiment in the broader crypto market. Additionally, the increase in price has drives significant trading activity, with WLD’s trading volume spiking by 85%, according to CoinMarketCap.

Bullish On-Chain Metrics

On-chain metrics further highlight the optimism surrounding WLD’s price action. According to Coinglass, intra-day traders have been increasingly bullish on the token, with WLD’s Open Interest rising by 27% in the past 24 hours. The long/short ratio for WLD stood at 1.03, indicating that traders are leaning toward long positions, further signaling strong bullish sentiment. In fact, 51.5% of top traders held long positions, while 48.5% held short positions.

This bullish outlook is supported by the fact that the Relative Strength Index (RSI) for WLD is still well below the overbought region, suggesting that there is room for further price growth in the short term.

WLD Technical Analysis and Key Levels

From a technical perspective, WLD has encountered resistance at the $2.55 level and the 200 Exponential Moving Average (EMA) on the daily chart. These resistance levels have made it challenging for the token to break through and continue its upward momentum. However, should WLD manage to close a daily candle above the $2.70 level, the token could potentially soar by as much as 60%, with a target price of $4.22.

The technical indicators are aligning with the bullish sentiment, and if WLD manages to breach this resistance, the path to higher levels looks promising.

What’s Next for WLD?

Despite the looming token unlock and the potential for short-term selling pressure, WLD’s technical setup and bullish sentiment suggest that the token could see significant gains if it manages to break key resistance levels. Traders are closely watching the $2.70 level, as a daily close above this point could trigger a price surge toward the $4.22 mark.

In the short term, the market’s response to the token unlock and the broader crypto market’s performance will be crucial in determining WLD’s direction. However, with the current bullish on-chain metrics and the potential for a breakout, Worldcoin could be in for a period of positive price action in the coming weeks.