- Worldcoin has matched Bitcoin’s performance recently.
- The dwindling on-chain activity and distribution could be a warning for investors.
As a seasoned analyst with over two decades of experience in the cryptocurrency market, I find myself cautiously optimistic about Worldcoin [WLD]. While its recent price performance has been impressive, matching that of Bitcoin, it’s essential to delve deeper into on-chain metrics and distribution patterns.
As a crypto investor, I noticed an uptick of 3.5% in Worldcoin’s [WLD] Open Interest in the futures market, but unfortunately, the coin’s price dropped by a significant 8.2% over the past week. Digging into the on-chain data, it appears that activity has been sluggish for the last fortnight.
Worldcoin in a distribution phase
Between September 9th and October 15th, the Worldcoin network experienced consistent growth in terms of user base expansion. This statistic refers to the count of new accounts generated each day on the network, indicating a surge in usage and interest.
During that timeframe, the number of daily active addresses was consistently increasing as well. However, starting from mid-October, there was a noticeable shift. Both activity metrics saw an abrupt decline, and the token’s price started to falter.
The transaction volume also decreased but was still above the levels it was in mid-September.
On October 15th, the average age of coins in circulation saw a significant drop due to the token’s rejection at the $2.6 level. This decline suggests increased movement of tokens between different wallets, which was indicated by an uptick in previously dormant circulation.
The average age of coins in circulation hasn’t bounced back yet, indicating that the token was likely still being distributed following its initial rejection. This also suggests that, on average, short-term investors have experienced a 10.79% loss over the past 30 days as measured by MVRV (Momentum Value Ratio to Realized Value).
Worldcoin prospects for a continued uptrend
Since the 10th of October, Bitcoin [BTC] has rallied 19.38% and sits just 2% below its all-time high of $73,737. During this time, WLD was up by 22.35%. Additionally, the bulls have successfully defended key Fibonacci levels at $1.77 and $1.96.
Read Worldcoin’s [WLD] Price Prediction 2024-25
In simpler terms, the trend suggested by the On-Balance Volume (OBV) didn’t mirror the optimistic indications from the price movement. Instead, it showed a declining pattern throughout October, suggesting a decrease in demand. Moreover, at the time of writing, the Relative Strength Index (RSI) reading of 38.6 pointed towards a bearish trend, indicating that selling pressure might be stronger than buying pressure.
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2024-10-30 17:11