Worldcoin (WLD) May Not Be the Best Choice for Your Portfolio This October

Worldcoin's (WLD) price has faced significant price pressure recently, failing to bounce off the $2.00 support level.

Worldcoin’s (WLD) price has come under increasing pressure, failing to find support at the $2.00 level. At the time of writing, the altcoin is trading at $1.65, with consolidation appearing to be the next likely move.

Investors are now considering whether Worldcoin is a good addition to their portfolio this October, as market sentiment around the token remains cautious.

Worldcoin May Not Be the Best Choice

The MVRV (Market Value to Realized Value) Long/Short Difference indicator for Worldcoin is currently signaling a bearish outlook. Typically, highly positive values of this indicator suggest that long-term holders are in profit, which is a sign of stability. On the other hand, deeply negative values indicate that short-term holders are profiting, which tends to increase selling pressure.

Currently, the indicator is at -24%, showing that short-term holders are seeing profits. These investors’ profits are a bearish sign, as short-term investors are often quickly to sell their holdings, increasing 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.

Moreover, the broader macro momentum for Worldcoin isn’t faring much better. WLD’s Sharpe Ratio, an indicator that 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. This is because 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.

WLD Price Prediction: Barriers Ahead

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, which may not present a significant hurdle, but 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. This possibility excludes Worldcoin from the “must-have altcoins for your portfolio in October” list.

However, a change in market trends and a successful breach of $1.74 could enable Worldcoin to rise beyond $2.00. If this occurs, it will invalidate the current bearish-neutral outlook, potentially pushing WLD’s price toward $2.50.

The above is the detailed content of Worldcoin (WLD) May Not Be the Best Choice for Your Portfolio This October. For more information, please follow other related articles on the PHP Chinese website!