Worldcoin (WLD), the token associated with the digital identity project, has witnessed a staggering surge in value over the past month, offering holders a remarkable 230% in gains. This meteoric rise can be attributed to two significant catalysts: the release of Sora by OpenAI and the impressive earnings report from NVIDIA.
AI narrative boosts Worldcoin’s token performance
The surge in WLD price correlates with the escalating interest in Artificial Intelligence (AI) narratives. OpenAI’s unveiling of Sora, a cutting-edge text-to-video generator tool, has played a pivotal role in bolstering confidence in AI-related tokens.
Furthermore, the release of NVIDIA’s fourth-quarter 2023 earnings, surpassing expectations, has further fueled the optimism surrounding AI tokens, including WLD.
Profit realization among WLD holders
Data from on-chain intelligence trackers has revealed that significant wallet addresses have realized substantial profits as the price of WLD rallied. Since February 10, when the price rally gained momentum, WLD holders have consistently opted for profit-taking, capitalizing on the impressive surge in value.
Among the top beneficiaries of the WLD price rally are investors who have seen returns ranging from 84% to 236% on their WLD holdings. Notably, one of the top gainers acquired WLD in 2023 at an average price of $2, underlining the substantial gains realized during this period.
Potential correction ahead
While the surge in WLD price has been remarkable, there are indications that a correction may be on the horizon. The Network Realized Profit/Loss (NPL) metric, a key indicator of profit or loss realized by an asset’s holders on a given day, suggests that WLD holders have been consistently taking profits since February 10. Such profit-taking spikes often precede corrections in prices, signaling a potential downturn.
Supply distribution trends
Supply Distribution data from Santiment indicates that certain segments of WLD holders have been accumulating the asset between February 10 and 27. Wallets holding between 100,000 and 1 million WLD tokens, in particular, have been accumulating the asset, a trend typically observed during price rallies. However, once this segment of holders begins to offload their holdings, a decline in WLD’s price is likely.
