Worldcoin [WLD] has faced significant downward pressure, dropping by 16.01% over the last week to reach $1.99 at the current time. Nonetheless, there are indications of a potential recovery in market conditions, setting the stage for Worldcoin to potentially see gains. The asset has already experienced a 0.17% increase upon entering a bullish territory, as per the latest data from CoinMarketCap.
WLD Initiates First Step Towards Bullish Momentum
Worldcoin has taken a positive initial step towards a potential rally after touching a demand area, resulting in a green candlestick with another one in formation.
This demand region, spanning from $1.880 to $1.720, has the potential to drive Worldcoin towards a short-term target of $2.479 if adequate buying pressure emerges, with a longer-term objective positioned at $3.262.
However, failure to maintain this zone could lead Worldcoin to retrace towards the $1 mark, possibly testing support levels at $1.693 and $1.532.
Based on analysis by CryptoCrypto, a prevailing bullish sentiment is observed, with traders favoring an upward trajectory for the asset.
Anticipating Worldcoin’s Impending Rally
Several on-chain indicators suggest that Worldcoin is gearing up for a substantial upward movement. Currently, both Exchange Netflow and Chaikin Money Flow are signaling positive trends.
Coinglass data shows that Exchange Netflow has predominantly been negative. Over the past 24 hours and the previous seven days, Worldcoin has witnessed significant outflows from exchanges, amounting to $602.62 thousand and $17.88 million, respectively.
A negative Exchange Netflow indicates a larger amount of Worldcoin leaving exchanges compared to entering them, reflecting growing trader confidence. This dynamic could pave the way for a price rally as the availability of WLD on exchanges diminishes.
Similarly, the Chaikin Money Flow, which gauges liquidity inflow, indicates ongoing buying activity for Worldcoin amidst notable withdrawals.
With increasing demand anticipated for Worldcoin as its supply decreases and traders look to benefit from limited availability, it seems imminent that a significant upward movement is on the horizon.
Brief Halt in the Expected Rally
Worldcoin’s rally might encounter a slight setback. Despite positive momentum and heightened interest in the asset, data on liquidations is unfavorable for short positions.
At present, long liquidations amount to $496.77 thousand, surpassing short liquidations of $139.11 thousand. This suggests that while the market sentiment remains bullish, losses in long positions could potentially delay a significant upward surge.