Key Takeaways
Worldcoin surged 10%, driven by strong accumulation, rising scarcity, and bullish futures sentiment. Technical indicators suggest continued momentum, with $1.71 as key resistance and $2.51 as long-term upside target.
After successfully testing and flipping $1.28 as earlier predicted by AMBCrypto, Worldcoin [WLD] soared to a two-month high of $1.40 then retraced.
At the time of writing, Worldcoin was trading at $1.335, marking a 10.14% increase over the past 24 hours.
Likewise, the altcoin’s volume jumped 70% to $637 million while Market cap surged 10.88% to $2.33 billion, reflecting increased capital inflow.
Worldcoin’s scarcity soars
Significantly, as WLD price surged, investors rushed into the market to accumulate the altcoin. According to CoinGlass data, Worldcoin has recorded thirty consecutive days of negative Netflow.
Source: CoinGlass
At press time, WLD Netflow declined significantly, hitting a low of -$3.6 million.
When Netflow sustains itself within a negative zone, it reflects a higher Exchange Outflow relative to Inflow, a clear sign of aggressive accumulation.
As a result, Worldcoin’s scarcity soared to a weekly high of 518.68 million WLD tokens. A rising shortage means there are fewer tokens available for immediate selling, thus reducing potential selling pressure.
Historically, reduced supply has preceded higher prices as downward pressure on prices also plummets.
Futures are even more bullish
Interestingly, when we examine futures markets, it appears that Worldcoin’s resilience stems from increased demand for strategic positions.
According to Coinalyze, Worldcoin’s Funding Rate has remained positive throughout the past week. At the time of writing, the metric stood at approximately 0.0185, while the Predicted Funding Rate was around 0.0164.
Usually, a sustained positive Funding Rate reflects a higher demand for long positions. For that reason, Long Short Ratio soared to 3.18 with Longs accounting for 76% while shorts accounted for 23% of the Futures positions.
Typically, a higher demand for longs suggests that investors are actively betting on prices to rise even further.
How far can WLD go?
According to AMBCrypto’s analysis, WLD’s sustained uptrend is primarily driven by strong demand across the market.
As a result, the altcoin’s weekly Relative Strength Index RSI entered into bullish territory, reaching 51, at press time.
At the same time, its Stochastic RSI surged to 89, touching the overbought zone while confirming increased demand.
When momentum indicators are set in this manner, they signal strong upward momentum and its potential to continue.
That said, if current demand persists, Worldcoin will undoubtedly continue to make gains. After flipping $1.28 resistance into support, it’s now testing $1.4.
As of writing, the next significant resistance was spotted around $1.71. A confirmed close above $1.71 could signal the start of a long-term trend reversal, with WLD challenging the 200-day EMA around $2.51.
However, if bears reenter the market, the altcoin will pull back to $1.15 before attempting another leg up.
