Worldcoin experienced severe volatility after a failed recovery attempt led to a market-wide selloff. In the last 24 hours, WLD is down 21%, reflecting general weakness in digital assets.
While most investors suffered losses, some traders were positioned defensively. Their preparation allowed them to profit when the value momentum reversed after the short rally.
Worldcoin holders are accumulating
Worldcoin's initial rally was fueled by aggressive accumulation from holders. Within three days, investors added around 13 million WLD value $6 million. This buying activity reduced circulating supply and briefly supported the value. Accumulation often signals confidence in early recoveries.
Despite the following crash, foreign exchange holdings didn’t see a pointy increase. This suggests that holders aren’t rushing to sell. Many investors remain under pressure after the decline. As a result, HODLing behavior dominates for now. The lack of forex inflows reduces immediate selling pressure at the same time as sentiment weakens.
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WLD exchange balance. Source: Glassnode
Derivatives data provides insight into how traders expected the downturn. Worldcoin’s funding rate has turned sharply negative. Financing rates reflect the balance between long and short contracts. Negative values ​​indicate that short positions are paying off long positions, meaning bearish positions dominate.
The funding rate turned negative on January 29, before the crash. This shift shows that traders expected a decline after the rapid rise. Short sellers are prone to have benefited from the value drop. Such positioning often increases volatility during corrections, especially when spot demand weakens at the identical time.
Worldcoin funding rate. Source: Coinglass
WLD price loses its gains
At the time of writing, Worldcoin is priced at around $0.46. The token stays above the $0.44 support level after a 21% decline. The selloff followed a failed try to break a months-long downtrend. This rejection confirmed ongoing resistance and limited upside momentum.
Current indicators point to mixed sentiment. Accumulation by holders contrasts with bearish positioning in derivatives. This balance suggests consolidation fairly than immediate continuation. WLD is prone to trade between $0.47 and $0.44 within the short term. A bigger influx of buyers could be needed to restart the rally.
Downside risk stays if overall market conditions proceed to deteriorate. Sustained bearish signals could push Worldcoin price below $0.44. A breakdown would reveal lower targets near $0.41 or $0.40. Such a move would invalidate the bullish recovery thesis and extend the correction phase.
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Article source: beincrypto.com
The post Worldcoin (WLD) price crashes 21%, but here's how traders profited appeared first on Crypto Adventure.
