Worldcoin [WLD] encountered significant downward pressure, falling by 16.01% over the last week to reach $1.99 at the time of writing. Nonetheless, market conditions began to show signs of improvement, hinting at a potential advantage for WLD. The asset has already climbed 0.17% upon entering a bullish territory, as reported by CoinMarketCap.
WLD Initiates Bullish Momentum in a Fresh Rally Attempt
WLD has taken a crucial first step towards a potential rally after touching a demand area, resulting in a green candle and the formation of another.
This demand zone, ranging from $1.880 to $1.720, could propel WLD towards an immediate target of $2.479 if there is enough buying pressure, with a longer-term objective set at $3.262.
However, failure to hold this zone might lead Worldcoin to retrace towards the $1 level, potentially testing support levels at $1.693 and $1.532.
Per analysis from CryptoCrypto, bullish sentiment appears to be prevalent, with traders favoring an upward trend.
Anticipating a Rally for WLD
Various on-chain metrics suggest that WLD is gearing up for a substantial upward movement. Currently, both Exchange Netflow and Chaikin Money Flow are indicating positive trends.
Based on Coinglass data, Exchange Netflow has predominantly been negative, with significant withdrawals from exchanges observed in the past 24 hours and the last seven days, totaling $602.62 thousand and $17.88 million, respectively.
A negative Exchange Netflow implies more Worldcoin leaving exchanges than entering, signaling heightened trader confidence. This scenario could trigger a price surge as WLD becomes scarcer on exchanges.
Similarly, the Chaikin Money Flow, measuring liquidity inflow, indicates a combination of notable withdrawals and active WLD purchases.
If this pattern persists, demand for WLD is expected to increase as supply diminishes, potentially leading to a significant upward movement in the near future.
Temporary Halt in the Expected Rally
The anticipated rally for WLD could experience a slight delay. Despite positive momentum and growing interest in the asset, liquidation data seems unfavorable for short positions.
At present, long liquidations have amounted to $496.77 thousand, surpassing short liquidations at just $139.11 thousand. This suggests that although the market sentiment remains bullish, current losses in long positions might hinder a significant upward surge.