Worldcoin (WLD) has seen a significant price surge in the last 24 hours, rising over 40% to peak at $4.5 earlier today. This bullish movement comes as WLD circulation took a major reduction.
Causes Behind the Spike
An X user @0x_PlanT explained, the WLD price jump was “stimulated by a significant reduction in circulation.” With less WLD tokens available, demand has outpaced supply leading to rapid growth.
However, @0x_PlanT warns that this bullish run may be short-lived, stating that “The RSI has reached extreme overbought levels, and long positions can be profit-taking.” This indicates traders may soon start selling off shares to lock in profits.
Peak and Profit-Taking
Echoing a similar warning, ArthurDG17 cautions that the coin’s swift rise to $4.5 represents a peak, saying traders should “take time to strategize your next trades seeing a rush on shorts right now.”
As both posters point out, this flood of shorts suggests the peak may give way to a downhill slide soon. ArthurDG17 advises traders “seeing a rush on shorts” to carefully plan their next move rather than jumping back into a falling market.
Sustainability in Question
While the 40% single-day growth is initially exciting for holders, the sustainability of this bull run remains uncertain. Without continued pressure from reduced circulation, the price may correct back downward once profit-taking kicks in.
For now WLD continues pushing higher, but traders seem wary that this stimulus-fueled surge could be a bubble ready to pop. As short positions pile up expecting a drop, the odds of a lasting upside move appear unlikely.
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