Worldcoin’s (WLD) price has faced significant price pressure recently, failing to bounce off the $2.00 support level. The altcoin is currently trading at $1.65, with consolidation appearing to be the next likely move. 

Investors are now assessing 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. Highly positive values typically suggest that long-term holders are in profit, 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 prone to selling quickly, 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.

Read More: How to Buy Worldcoin (WLD) and Everything You Need to Know

Furthermore, 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.

Read More: Worldcoin (WLD) Price Prediction 2024/2025/2030

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.

On Thursday, Visa launched the Visa Tokenized Asset Platform (VTAP) through a partnership with a Spanish bank. VTAP is a tool for banks to launch real-world assets (RWAs), connecting them to the crypto ecosystem.

The RWA market is growing, and Visa hopes to reap the rewards of plugging banks in.

VTAP’s Early Stages

Credit card giant Visa declared this news via a press release, describing its new product as the Visa Tokenized Asset Platform (VTAP). Visa called it a product for traditional finance (TradFi) to bridge fiat currencies with blockchains and planned a wide-release live pilot with Ethereum in early 2025.

Read More: Real World Asset (RWA) Backed Tokens Explained

The press release may describe VTAP as a completely new product, but this is not its first public appearance. Visa began a partnership with Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) in late September, intending to carry out a small “sandbox” test of VTAP. BBVA will continue to play this leading role in VTAP’s gradual rollout.

“We are proud to continue spearheading the exploration of tokenized solutions with Visa through its VTAP platform. This collaboration marks a significant milestone… and will ultimately help enable us to broaden our banking services and expand the market,” said Francisco Maroto, Head of Blockchain and Digital Assets at BBVA.

Visa’s press release focused on VTAP’s ability to plug traditional finance into crypto by creating RWAs, especially stablecoins. This big-picture analysis, however, is less useful at describing VTAP’s influence in regular bank operations. A Fortune interview with Maroto helps elucidate the picture on the ground.

Visa, Real-World Assets and Stablecoins

The interview described BBVA’s partnership with Visa as more of a stablecoin launch than the development of a new financial tool. Maroto didn’t mention VTAP by name, claiming instead that BBVA is building a new stablecoin for the crypto settlements. BBVA’s European area of operations is a big asset to Visa due to recent EU stablecoin regulations.

Read More: What Is Markets in Crypto-Assets (MiCA)?

In other words, VTAP isn’t just a platform to connect TradFi to the blockchain world; it’s a way to connect Visa to the growing RWA market. Visa has conducted experiments with RWAs, such as tokenized deposits in multiple jurisdictions this year, and VTAP aims to take it worldwide. RWAs are a growing market, and VTAP looks like Visa’s ticket in.

Considering the sheer speed of growth in the RWA market, Visa’s project will be quite interesting. If other banks follow BBVA’s lead and use VTAP to enter the stablecoins sector, Visa will reap huge rewards. However, if profits are tempting enough, other institutions will surely develop their own RWA platforms.

Ultimately, VTAP is still in the early stages. Visa will focus on the specific partnership with BBVA for at least several months, and the results will determine the wider rollout. Still, if conditions are right, VTAP could prove a formidable tool for TradFi institutions in the future.