Will WLD Price Fall After Its Upcoming Token Unlock? Here's What Technical Analysis and On-Chain Metrics Suggest

Worldcoin’s [WLD] native token seemed set to register a price decline due to an upcoming token unlock, as per a report by a social media platform on 7 January. The platform stated that 37.23 million WLD tokens will be unlocked by Worldcoin. At the time, 1 WLD was valued at $2.41, making the unlocked tokens worth nearly $90.09 million.

With the unlock set to release a significant portion of the circulating supply, it created selling pressure. According to the platform, the substantial tokens being unlocked accounted for nearly 4.5% of the total circulating supply. Based on historical data, such token unlocks have led to selling pressure and periods of price depreciation.

WLD price unfazed by market, soars 7.5%

The overall crypto market sentiment appeared confusing as Bitcoin (BTC) gained impressive upside momentum, while other cryptocurrencies seemed to be struggling. However, WLD price appeared to be unbothered by the market, soaring by 7.5% in 24 hours.

This price surge attracted traders and investors, as trading volume also increased by 85%, according to CoinMarketCap.

Intra-day traders seemed optimistic about the price surge as, in the last 24 hours, they increased their positions. Data showed that WLD’s Open Interest rose by 27%. The WLD long/short ratio stood at 1.03, indicating strong bullish sentiment among traders. Furthermore, 51.5% of top traders held long positions, while 48.5% held short positions.

WLD technical analysis and key levels

According to AMBCrypto’s technical analysis, WLD faced resistance at a horizontal level of $2.55 and the 200 Exponential Moving Average (EMA) on the daily timeframe. However, the price struggled to breach this hurdle and continue its upside momentum.

Based on its recent price action, if WLD breaks the resistance level and closes a daily candle above the $2.70-level, it is likely to continue rallying by 60% to hit the $4.22 level in the future.

At the time of writing, WLD’s Relative Strength Index (RSI) was well below the overbought area – A sign that the token has enough room for further rally in the short-term.