- 65% of Worldcoin (WLD) investors remain at a loss, having acquired tokens at higher prices, while only 25% are currently profitable.
- While WLD is riding a strong uptrend, with short-term EMAs above long-term EMAs indicating sustained buying pressure, the Bollinger Band Trend momentum indicator has turned negative.
Worldcoin (WLD) has experienced a notable surge of over 12% in price over the past 24 hours. As of press time, WLD is trading at $2.61 with a market cap of $1.4 billion. However, the majority of its investors remain in a losing position.
Approximately 65% of WLD holders acquired their tokens at prices higher than the recent gains, meaning only around 25% are currently seeing a profit. Meanwhile, according to the Historical Break Even Price chart, about 10% of holders are at break-even.
Worldcoin Price Faces Uncertainty
The current situation could lead to reduced selling pressure in the short term. Many of those holding at a loss may be hesitant to sell, opting to wait for further price increases in the hopes of recouping their losses. Such a scenario could limit sell-offs with a more favorable environment for price growth if demand remains stable.
However, technical indicators suggest that this bullish trend may not last. The BBTrend indicator, which measures momentum in relation to Bollinger Bands, has turned negative. A current BBTrend reading of -0.5 suggests that the upward momentum is weakening. This signals a shift toward a bearish sentiment for the WLD price.
The BBTrend hit its highest value of 14 on October 9, reflecting strong buying pressure at the time. On the contrary, it has steadily declined since October 11. As of now, the BBTrend has dropped below 2.5 and has entered negative territory. This value raises concerns that the recent bulls may be losing strength.
The BBTrend’s negative reading highlights the possibility of a trend reversal or consolidation. Bollinger Bands, which track price volatility, are often used by traders to gauge the strength of market trends. In this case, the declining BBTrend suggests that the WLD price surge may have overextended and may be slowing down.
WLD Rally Incoming?
Despite this, other technical factors show that WLD is still riding a strong uptrend. All short-term Exponential Moving Average (EMA) lines remain comfortably above long-term EMAs. This alignment of EMAs signals strong buying pressure and reflects sustained bullish sentiment.
The wide gap between short-term and long-term EMA lines further confirms that upward WLD price momentum remains in play for now. EMAs are often used by traders to smooth out price fluctuations and identify trends, with more recent data given extra weight.
The current positioning indicates significant buying interest for Worldcoin especially with the growing hype around AI-related tokens. Also, in the last seven days, the WLD price has surged 35.45% with a continued bullish rally, per the CNF report.
Moreover, analysts even expect the Worldcoin price to reclaim the $10 mark if the bullish momentum persists. In addition, it’s worth noting that Grayscale, a leading asset manager, is considering WLD for an independent fund launch.
Such an initiative signifies that institutional investors like Grayscale are optimistic about WLD’s future trajectory. Also, if the investment firm introduces a WLD fund, it could significantly attract institutional and retail influx. These inflows could further push the Worldcoin price upwards. Furthermore, as CNF reported, Worldcoin is not shifting its focus and priority to Asia and Latin American markets.
