Worldcoin [WLD] has broken out of a period of nearly two months of bearish consolidation.
It revisited the crucial $2 resistance level with an impressive 11% jump and a notable 100% surge in trading volume over the past 24 hours, exceeding the performance of many other significant alternative cryptocurrencies.
The bulls are now up against a critical challenge in sustaining this range. In contrast to prior efforts hindered by Bitcoin’s downward trends, there is a noticeable current optimism, paving the way for a potential breakthrough towards $3.
The Majority of Worldcoin Holders Are Currently At a Loss
Worldcoin, with the aim of creating the largest financial network, reached an all-time high (ATH) of $11.9 in just one year post its launch, coinciding with Bitcoin’s ATH of $73K in March.
Remarkably, WLD exhibited broader user involvement, with an RSI reaching 94 and a CMF of 40.
CryptoCrypto analysis suggests that this surge was primarily fueled by aggressive buying activities, indicating that numerous holders are currently facing overall losses.
Notably, approximately 4.28K addresses, holding 1.54 million Worldcoin, made purchases at an average price of $8 – significantly above the current price of $2.14.
While this scenario may seem bearish as reaching the breakeven point could result in tangible losses, these holders are expected to hold their positions.
Conversely, a drop back to $1.93 could cause more concern, potentially attracting liquidity involving around 4 million WLDs.
Traders Seizing Opportunities During Each Surge
Curiously, whenever Worldcoin nears a critical level, it frequently aligns with an increase in net deposits the following day.
For example, in mid-July, while bulls were trying to fend off a decline, WLD rose by 11% within a single trading session, yet a subsequent surge in deposits acted as resistance the next day.
In essence, even a minor upsurge in Worldcoin’s value triggers a wave of traders cashing in before the next surge.
Furthermore, throughout August and September, there was a consistent flow of WLD into exchanges, peaking at $2 million.
Nevertheless, Worldcoin saw a notable 30% surge in the previous week, indicating third-party involvement that absorbed the selling pressure.
WLD Will Experience a Breakout if THIS Factor Remains Relevant
Large Worldcoin holders, often referred to as whales, dominate the major holder category, possessing an impressive 8.38 billion WLD, representing 83.80% of the total supply.
Over the past five days, these whales have acquired more than 9 million WLD from exchanges, including a recent purchase of 6.23 million, as depicted by the sudden drop below.
Reportedly, these aggressive withdrawals have effectively counteracted the selling pressure. Noteworthy, the most recent accumulation coincided with Worldcoin surpassing the $2 threshold.
In simple terms, the whales are strategically positioning themselves for future gains, supporting WLD in surmounting crucial resistance levels. If this trend persists, Worldcoin might soon witness a breakthrough towards $3.