Worldcoin [WLD] saw a 3.50% increase, reaching $1.26 in the latest trading session and approached a significant juncture in its price movement.
As the price neared the midpoint of a descending channel, the possibility of a breakout or a continuation of the downward trend became more apparent.
Traders are closely monitoring key support and resistance levels to gauge whether WLD can push higher.
If WLD manages to breach crucial resistance levels, there is potential for it to aim for prices up to $2.80, offering a chance for considerable profits.
Crucial Levels to Monitor: Is WLD Poised for an Upward Breakout?
Recent price action has been limited within a descending channel, with significant levels emerging at both ends of the spectrum.
The immediate support is located within the $1.25–$1.30 range, and a successful defense of this zone could initiate a bullish rally.
However, breaking through the resistance range of $1.35–$1.50 is vital to pave the way for higher targets. Once past this barrier, the subsequent levels to observe would be $1.65, $1.95, and potentially $2.80.
Upward Trend in WLD Addresses Indicates…
The Worldcoin network has witnessed a notable uptick in activity, with Active Addresses surging by 45.05% in the last week. Furthermore, there has been a substantial 106.98% increase in new addresses, indicating a heightened interest in the project.
This surge in activity generally signals positivity, suggesting a rising demand for WLD.
If this momentum persists, it could underpin the likelihood of a breakout, drawing more participants into the network.
Market Response: What are Traders Doing?
Transaction metrics offer additional perspective on the prevailing market sentiment concerning WLD.
Despite the downtrend in prices, there has been notable activity in smaller transactions, with the $0.00–$1.00 range witnessing a substantial 300% surge.
This surge implies that smaller retail investors are becoming more engaged, possibly positioning themselves ahead of a potential breakout.
Conversely, larger transactions in the $10M–$100M bracket have decreased by 64.58%, indicating a slowdown in institutional activity.
Nevertheless, robust retail involvement suggests that Worldcoin may find the necessary support for upward movement if a breakout materializes.
Is a Short Squeeze Looming?
The Liquidation heatmap for WLD reveals a notable level of liquidation activity within the $1.26–$1.30 price range.
If the price continues to climb from this point, additional liquidations of short positions could occur, potentially triggering heightened price volatility.
This scenario could lead to a short squeeze, propelling upward momentum at an accelerated pace.
Therefore, vigilance is key around this price level as traders should watch for any rapid price fluctuations that could signal the onset of such a squeeze.
Breakout or Continuing Descent for Worldcoin?
Worldcoin exhibits indications of potential growth as it nears crucial resistance levels. The uptrend in active addresses and the surge in retail transactions suggest growing demand and positivity surrounding the project.
Furthermore, the liquidation heatmap hints at the possibility of a short squeeze driving further price appreciation.
Hence, it is probable that WLD will break its downtrend, exploring higher levels and potentially testing targets between $1.34 and $2.80.