Worldcoin Token Unlocking: Impact on Price Forecast
The price of Worldcoin has been showing signs of recovery, with a recent surge in value. However, a major announcement by the developers regarding a token unlock has raised concerns about the future price stability of WLD.
Token Unlock Announcement Raises Concerns
Worldcoin developers revealed that a significant token unlock is scheduled to begin on July 24, unlocking tokens allocated to Tools for Humanity (TFH) investors and team members. This unlocking process, set to release 2 million WLD tokens per day for the next four years, has sparked worries among investors and the crypto market.
Historically, token unlocks have been associated with bearish price movements, as the sudden influx of tokens into the market can outstrip demand, leading to a decrease in price.
Developer Response and Price Impact Analysis
To address these concerns, Worldcoin developers reassured the community that the unlocking process will be managed to slow the growth of the circulating supply. This strategic approach aims to minimize the negative impact on the price of WLD.
As the unlocking process begins next week, the market will closely monitor the price action of Worldcoin. Currently trading around $2.56, WLD is attempting to break through the $2.78 resistance level, with a successful breach potentially pushing the price towards $3.0 or higher.
Potential Price Scenarios and Market Outlook
The upcoming weeks will be critical for Worldcoin, with the possibility of price consolidation if investors react negatively to the token unlock. A drop in price to the range of $2.78 to $1.73 could occur if panic selling ensues, affecting the overall market sentiment towards WLD.
