Worldcoin’s (WLD) price has faced significant pressure recently, failing to bounce off the $2.00 support level. Currently trading at $1.65, consolidation appears to be the next likely move. Investors are evaluating whether Worldcoin is a good addition to their portfolio this October, as market sentiment around the token remains cautious.
The MVRV (Market Value to Realized Value) Long/Short Difference indicator for Worldcoin is currently signaling a bearish outlook. Highly positive values typically suggest that long-term holders are in profit, a sign of stability. Conversely, deeply negative values indicate that short-term holders are profiting, which tends to increase selling pressure.
Currently, the indicator stands at -24%, showing that short-term holders are seeing profits. This is a bearish sign, as short-term investors often sell quickly, heightening the likelihood of a price decline.
This shift in market sentiment, driven by short-term profit-taking, suggests that Worldcoin may struggle to regain upward momentum in the near term. The bearish signals are prompting many investors to remain cautious about adding WLD to their portfolios.
Furthermore, the broader macro momentum for Worldcoin isn’t faring much better. WLD's Sharpe Ratio, which measures the risk-adjusted returns of an asset, is at its lowest point since the altcoin's inception. This indicates that the risk associated with investing in WLD currently outweighs the potential rewards, making it a less attractive option for investors.
The low Sharpe Ratio suggests that Worldcoin may not be the best bet at the moment, as the current risk environment could lead to further losses. Investors are advised to be wary of entering the market under these conditions, as WLD may continue its downtrend unless significant bullish catalysts emerge.
Worldcoin’s price has declined by 24% in recent days, now trading at $1.65. Given the current market sentiment and macro indicators, it is likely that WLD will remain under the $2.00 barrier for the foreseeable future.
The altcoin is also facing resistance at $1.74. While this may not present a significant hurdle, failure to breach it could lead to further declines. A drop towards $1.34, the lower limit of the consolidation range between $2.00 and $1.34, is possible if bearish conditions persist.
