Worldcoin Token Unlocking: Impact on Price Forecast
The price of WorldCoin has recently shown signs of recovery, but the upcoming token unlocking event could potentially have a negative impact on its price trajectory.
Token Unlock Announcement and Market Reaction
Worldcoin developers made a significant announcement regarding the unlocking of WLD tokens allocated to Tools for Humanity (TFH) investors and team members. This unlock is set to begin on July 24, with a linear release of 2 million WLD tokens per day over the course of four years, totaling $5 million daily.
The market is cautious about this news, as token unlocks are often associated with bearish price movements. The sudden influx of additional tokens into circulation could potentially outpace demand, leading to a decline in price.
Developer Strategy: Mitigating Price Impact
In response to concerns about the potential price impact, Worldcoin developers have implemented a strategy to slow down the growth of the circulating token supply. By extending the unlocking schedule, they aim to minimize the negative effects on the price of WLD.
Investors are eagerly watching to see how this strategy plays out in the market next week, as the price of Worldcoin hovers around the critical $2.78 resistance level. A successful breach could propel WLD to $3.0 or higher, marking a significant recovery from recent losses.
Market Outlook: Factors to Consider
As investors evaluate the unfolding situation, it’s crucial to consider various factors that could influence the price of Worldcoin. Market sentiment, trading volume, and external developments all play a role in shaping the cryptocurrency’s price trajectory.
Ultimately, how investors respond to the token unlock event will determine whether Worldcoin can sustain its recovery momentum or face a period of consolidation between $2.78 and $1.73.
