Worldcoin (WLD) is preparing for a significant token unlocking event on January 27, 2025, where 37.23 million tokens will be released into circulation. This release represents 3.92% of its circulating market cap, raising concerns about its potential impact on market dynamics and price stability.
- Worldcoin's unlocking event releases 37.23 million tokens.
- WLD price declined 6.28% before unlock.
- Key support level at $1.80 for WLD.
- Linear unlocks reduce immediate oversupply impact.
- Market sentiment may weigh on WLD price.
- Future scenarios depend on market absorption dynamics.
As WLD trades at $1.866, reflecting a 6.28% decline over the previous 24 hours, traders are cautious ahead of the unlocking. The market’s ability to absorb the new supply will be critical in determining WLD’s price trajectory.
The upcoming unlocking event for Worldcoin is expected to influence the market significantly. Unlike one-time token releases, this linear unlocking will gradually introduce the new supply over time. This method is designed to mitigate the risk of immediate oversupply, but it can still lead to increased selling pressure if early investors choose to liquidate their holdings.
Key statistics surrounding the event include:
- 37.23 million WLD tokens to be unlocked.
- Current trading price: $1.866.
- Market cap impact: approximately $70 million.
As WLD hovers near a critical support level of $1.80, a breakdown could trigger further declines, with $1.50 as the next support. Resistance levels are identified at $2.00 and $2.334, which are crucial for any potential recovery. The Relative Strength Index (RSI) indicates that WLD is nearing oversold conditions, but a reversal is not yet confirmed.
In summary, the linear unlocking of 37.23 million WLD tokens poses both risks and opportunities for the market. The gradual release mechanism may help avoid an immediate supply shock, but traders must remain vigilant regarding market sentiment and key price levels to navigate potential volatility effectively.
The outcome of the token unlocking event will be pivotal for Worldcoin’s future price movements. Traders are encouraged to monitor the market closely as the unlocking unfolds, as the ability of the market to absorb the new supply will determine WLD’s trajectory in the coming weeks.
