- Holders are dealing with unrealized losses, indicating a potential buying opportunity.
- Circulation decreased, indicating confirmation of the increase to $0.7.46.
World currencies [WLD] The price may have fallen 45.17% in the last 30 days, but signals on the chain showed that the drop could be a blessing in disguise.
To start, AMBCrypto evaluated the ratio of market value to realized value (MVRV). According to data obtained from Santiment, WLD’s 30-day MVRV ratio was -24.86%.
This data implied that most holders of the token were facing an unrealized loss. So if they all decided to sell, the average holder would face a lower investment value.
But this is unlikely to happen. For the price, the the position of the metric could be a good buying opportunity before Worldcoin starts to bounce.
Source: Santiment
Returns will improve
This conclusion did not come out of the blue, and history has shown that a double-digit decline in the MVRV ratio has almost always been a good level for recovery.
For example, when the stat was -22.25% in January, the price rose from $2.50 to $11.88 a few weeks later. However, this does not mean that Worldcoin would deliver similar returns in the short term.
However, there is a high chance that WLD could reach $7.42 as the average return would remain at $24.57%. Regardless of the bullish signal, participants should be wary.
One reason for this was that of Worldcoin decision to inflate the circulating supply. According to the project, the increase was to meet demand for its orb-verified World IDs.
However, the statement said the team would only release 0.1% to 0.4% of the additional supply each week. If demand for the token increases as supply increases, WLD may be able to validate the prediction down to $7.
On the other hand, a bearish market situation without maximum bids for the token could slow the price increase. Meanwhile, one-day circulation fell to 1.87 million, according to Santiment.
This decline implied that fewer WLDs are involved in transactions. As such, selling pressure can be minimal. In addition, there was development activity start recording again on the Worldcoin network.
Source: Santiment
Targets start at the top resistance
The upward trend suggested that the project could release a new feature soon. Should this fluctuation continue, it could be a bullish validation that could impact the price of the token.
In addition to the on-chain perspective, it is also important to look at the potential from a technical perspective. On the daily chart, WLD formed a descending channel that lasted from March 9 until the time of writing.
However, it seemed that the bulls had found support at $4.43 and were determined to defend the area.
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Furthermore, the Relative Strength Index (RSI) was almost oversold, indicating that a recovery could be near.
Source: TradingView
The Money Flow Index (MFI) also gave a similar signal. Should this prediction come true, the next target for Worldcoin could be a rise to $7.46.