Worldcoin’s $70M Token Unlock: What’s Next for WLD?

Worldcoin—WLD, is about to face a significant token unlock event. A total of 37.23 million tokens, worth $70 million, will soon be released into the market. This raise concerns over how the market will absorb this new supply and the impact on price movements.

Bearish Trends Dominating WLD

As of January 27th, WLD was trading at $1.866, showing a 6.28% drop in just 24 hours. This decline comes before the token unlock, signaling growing caution among traders. WLD has been unable to gain momentum, with key indicators pointing toward continued bearish trends. 

The 50-day moving average is at $2.334, and the 200-day moving average stands at $2.412. Trading below these levels continues the downward trend observed since December. The Relative Strength Index (RSI) sits at 39.91, indicating oversold conditions without a clear reversal yet.

Will the Unlock Impact the Market?

Unlike one-time token unlocks, linear unlocking releases tokens gradually. This reduces the risk of an immediate oversupply. However, selling pressure could build if early investors or insiders choose to sell their unlocked tokens.

The release of $70 million worth of tokens may cause downward pressure, especially if the market can't absorb them smoothly. Some smaller unlocks have already occurred this year, but the full impact remains unclear. Two outcomes are possible after this unlock event. 

In the bearish scenario, gradual selling pressure could push the price below key support levels, leading to further losses. On the other hand, the market may absorb the tokens without much disruption, allowing for a potential recovery.