Why Worldcoin Will Soon Hit $7 Despite Price Drop

• Holders are dealing with unrealized losses, indicating a possible buying opportunity.
• Circulation decreased, suggesting validation of the bounce to $0.7.46.

worldcoin [WLD] The price might have declined by 45.17% in the last 30 days, but on-chain signals showed that the drop could be a blessing in disguise.

To begin with, AMBCrypto evaluated the relationship between market value and realized value (MVRV). According to data obtained from Santiment, the 30-day MVRV ratio of WLD was -24.86%.

This data implied that the majority of token holders had an unrealized loss. Therefore, if everyone decides to sell, the average holder would have to deal with a lower investment value.

But that is unlikely to happen. For the price, the metric position could be a good buying opportunity before Worldcoin starts to bounce.

Yields are about to get better

This inference did not come out of nowhere, and history has shown that a double-digit drop in the MVRV index has almost always been a good level for recovery.

For example, when the metric was at -22.25% in January, the price rose from $2.50 to $11.88 a few weeks later. However, this does not imply that Worldcoin will produce a similar performance in the short term.

However, there is a high probability that WLD will reach $7.42 as this would leave the average return at 24.57%. Regardless of the bullish signal, participants should remain vigilant.

One reason for this was the decision to inflate its circulating supply. According to the project, the increase was to meet demand for its orb-verified World IDs.

However, the statement mentions that the team will only release 0.1% to 0.4% of the additional supply on a weekly basis. If demand for the token increases as supply increases, then WLD could validate the prediction at $7.

On the other hand, a bear market condition without maximum bids because the token could stop the price increase. Meanwhile, one-day circulation fell to 1.87 million, according to Santiment.

This decrease implied that fewer WLDs have participated in transactions. As such, selling pressure could be minimal. Additionally, development activity was beginning to pick up again on the Worldcoin network.

Targets start at the upper resistance.

The bullish trend suggested that the project could launch a new feature soon. If this swing continues, it could be a bullish validation that could affect the price of the token.

In addition to the on-chain point of view, it is also important to check the potential from a technical perspective. On the daily chart, WLD formed a descending channel that lasted from March 9 until the time of writing.

However, it seemed that the bulls had found support at $4.43 and were committed to defending the area.

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Additionally, the Relative Strength Index (RSI) was close to being oversold, indicating that a rebound could be close.

The Money Flow Index (MFI) also indicated a similar signal. If this prediction comes true, Worldcoin’s next target could be a rise to $7.46.

This is an automatic translation of our English version.