- The asset recently rebounded from a key demand area, a move that could help fuel its upward trajectory.
- Despite prevailing bullish sentiment, one indicator suggests this rally could face some resistance.
Worldcoin (WLD) has struggled under downward pressure, falling 16.01% last week to trade at $1.99 at press time. However, market conditions were showing signs of recovery and WLD appeared poised to take advantage. Entering a bullish zone, the asset has already increased by 0.17%, according to CoinMarketCap.
WLD takes first bullish step in new rally attempt
WLD took its first bullish step toward a potential rally after dipping into a demand zone, resulting in one green candle forming and another in progress.
This demand zone, between $1.880 and $1.720, could push WLD towards a short-term target of $2.479 if sufficient buying pressure develops, with a longer-term target set at $3.262.
However, if Worldcoin fails to hold this zone, the asset could fall back into the $1 range, potentially testing the supports at $1.693 and $1.532.
According to AMBCrypto analysis, bullish sentiment appears to dominate, with traders supporting a bullish move.
Source: Commercial View
WLD rally remains a question of time
Several on-chain metrics indicated that WLD was poised for a significant upward move. Currently, Exchange Netflow and Chaikin Money Flow are reporting promising trends.
Exchange Netflow according to Coinglass has been mostly negative. Over the past 24 hours and seven days, WLD has seen massive withdrawals from exchanges, totaling $602.62 thousand and $17.88 million, respectively.
A negative net trade flow suggests that there has been a greater exit of Worldcoin from exchanges than inflow, indicating increased trader confidence. This dynamic may lead to higher prices as fewer WLD assets become available on exchanges.
Source: Coinglass
Similarly, the Chaikin Money Flow, which measures cash inflows, revealed that while large withdrawals were occurring, there were also active purchases of WLD.
Source: Commercial View
If this trend continues, demand for WLD is expected to increase. Especially as supply dwindles and retailers look to capitalize on the tightening availability, it’s only a matter of time before a major surge.
Slight delay in the rally
The WLD rally could experience a slight delay. Despite positive momentum and growing interest in the asset, liquidation data was unfavorable for short positions.
Realistic or not, here is the market capitalization of WLD in BTC terms
At press time, long liquidations totaled $496.77 thousand, compared to just $139.11 thousand for short sales. This indicates that even if the market remains bullish, current losses on long positions could delay a significant upward move.
