Worldcoin’s token WLD has experienced an extended period of consolidation over the last eight months, particularly intensifying in the past four months.
Currently priced at $2.63, WLD is still a considerable distance away from its peak of $11 achieved during the bullish run of Bitcoin [BTC] back in March.
Despite this, there is a growing sense of positivity surrounding the token. An influential analyst has suggested a potential breakout towards $4, as WLD’s trading volume has surged by 50% in the last 24 hours, edging closer to its previous resistance point of $3.
This uptick in both volume and price action may indicate that WLD is approaching a turning point from its prolonged period of decline, potentially signaling the beginning of a recovery phase.
Could this be a pivotal moment that investors have long awaited?
Positive Signs Point Towards Undiscovered Potential
Typically, a consolidation phase reflects a balance between buying and selling activity, showcasing a lack of considerable capital inflow. Therefore, a surge in buying pressure is essential to prompt a breakout.
Upon reviewing the daily price chart, it is evident that WLD is experiencing a notable imbalance, where selling pressure consistently surpasses buying activity, confining the token within the $1–$2 range.
The Relative Strength Index (RSI) indicates this underbought status, signaling a promising upside potential that has yet to be tapped into.
Bulls seem to be capitalizing on this opportunity, as evidenced by the surge in trading volume that contributed to a 6% price increase within the last 24 hours.
While these positive indicators could drive WLD towards the $4 mark with heightened volatility, they might not be adequate to propel the token back to its peak value.
Reaching such a milestone would necessitate substantial involvement from major HODLers to sustain the momentum.
Key Players Required to Maintain WLD’s Momentum
Over the past month, major HODLers have predominantly been distributing their holdings, with only one significant instance of substantial WLD withdrawals from exchanges, totaling nearly 80 million tokens.
Despite this activity, there was little impact on the token’s price action, indicating that the intense volatility is acting as a barrier to a breakout for WLD.
To counter the prevailing selling pressure, a more consistent and prolonged accumulation effort may be necessary.
Furthermore, short positions have dominated the perpetual market, which aligns with WLD’s current market position.
Nevertheless, there is a glimmer of hope as increased trading volume and speculative interest could set the stage for a potential reversal if the bulls regain control.
The rationale is simple: An increase in whale accumulation could disrupt the stronghold of short-sellers in recent months, potentially leading to a short squeeze if buying pressure escalates, forcing shorts to close their positions, resulting in a temporary yet significant uptrend.
Therefore, given the present imbalance between buying and selling pressures, a short squeeze seems to be the most probable catalyst to propel WLD out of its downturn and potentially trigger a new all-time high.
However, this outcome hinges on sustained elevated trading volume and active participation from whales.