Price of Worldcoin
From February 25 to March 7, the price of Worldcoin (WLD) experienced a significant drop of 40% from its all-time high of $9.50. This decline occurred after Elon Musk filed a lawsuit against Worldcoin’s parent company, OpenAI.
The Worldcoin price has been influenced by both positive and negative factors since March 1. On the one hand, there have been bullish tailwinds from the NVIDIA-led Crypto AI renaissance. On the other hand, the legal battle between Elon Musk and OpenAI has created bearish sentiments.
To understand how these factors might impact the short-term price action of WLD, it is important to analyze the response of crypto whales and long-term investors in the Worldcoin network.
When news of Elon Musk’s lawsuit broke, the price of WLD plummeted by 40% to a two-week low of $5.60 on March 5. This sudden drop put an end to the historic rally that saw WLD reach an all-time high of $9.50 on February 25.
Despite the lawsuit, crypto whales have continued to invest in Worldcoin. Data from Santiment shows that these risk-seeking investors have acquired an additional 720,000 WLD tokens between March 2 and March 7. This indicates that they see the price dip as an opportunity to accumulate more tokens and potentially profit from future gains as the project develops.
The whale cohort currently holds over 521.9 million WLD, which represents 5.2% of the total circulation supply. Historically, the buy/sell trends of these whales have been correlated with WLD price movements. If they continue to buy, it could help prevent a significant price downturn as the lawsuit unfolds.
In addition to the crypto whales, long-term investors in Worldcoin have also shown resilience amid the legal crisis. Santiment’s age consumed metric, which tracks the trading activity of these investors, has seen a decline since Elon Musk’s lawsuit. This suggests that they are holding onto their tokens and have confidence in the long-term prospects and value of Worldcoin.
The early reactions from the whales and long-term investors indicate that they will likely support WLD prices in the near term. Despite the initial fears of a downward spiral, the price of WLD has rebounded from its low of $5.60 on March 5 and is now at $7.20.
This bullish conviction could be attributed to belief in the project’s fundamentals or a strategy to capitalize on potential gains if OpenAI achieves a legal victory over Elon Musk, similar to Ripple (XRP)’s breakout moment.
If the current trends persist as the lawsuit continues, Worldcoin price could defy expectations and experience another surge towards $10.
