Worldcoin （WLD） is experiencing increased bearish pressure, with a surge in short positions indicating traders’ expectations of further price declines.
Points
- Surge in demand for WLD short positions.
- Predominantly negative funding rates since July 11.
- Significant price drop due to Tools for Humanity’s token release plans.
- Bearish sentiment in both derivatives and spot markets.
Worldcoin （WLD）, the token powering the Worldcoin project co-founded by OpenAI CEO Sam Altman, is under significant bearish pressure. Traders have been increasingly taking short positions, as evidenced by predominantly negative funding rates across major cryptocurrency exchanges since July 11.
Beincrypto
Funding rates in perpetual futures contracts help keep an asset’s contract price close to its spot price. When funding rates are positive, it indicates more traders are buying the asset in anticipation of a price increase. Conversely, negative funding rates suggest that more traders are taking short positions, expecting the asset’s price to decline.
The surge in short positions for WLD began after Tools for Humanity （TFH）, the developer behind Worldcoin, announced plans to release 2 million tokens daily starting July 24. This announcement led to a lack of confidence in the token, with many traders betting against its price.
In recent days, the selling pressure on WLD has spiked, causing its price to drop and leading to the liquidation of several long positions. Liquidations occur when an asset’s value moves against a trader’s position, resulting in forced closure due to insufficient funds. Data from Coinglass reveals that WLD’s long liquidations have totaled approximately $11.46 million in the past seven days.
Beincrypto
Bearish sentiment is also prevalent in WLD’s spot market. The Parabolic Stop and Reverse （SAR） indicator, shown on a daily chart, confirms this trend. Currently, the dots of the SAR indicator lie above WLD’s price, signaling a downtrend.
Beincrypto
An asset’s SAR indicator identifies potential trend directions and price reversal points. When the dots are above the asset’s price, it suggests a bearish trend is underway. If WLD’s price continues to fall, it might trade below the $2 level, with the next target being $1.80. However, if the market sentiment shifts positively, WLD’s price could rally past $3 and potentially reach $4.20.
解説
- Market Sentiment: The persistent negative funding rates and increased short positions reflect a strong bearish sentiment among traders, anticipating further declines in WLD’s price.
- Technical Indicators: The use of SAR and funding rates provides insight into market trends and potential price movements, essential for traders looking to capitalize on market dynamics.
- Future Projections: Understanding the current bearish trends and monitoring key support and resistance levels will be crucial for traders to navigate the volatile market conditions surrounding Worldcoin.