Decoding Worldcoin’s 16% rally – Can WLD retest $0.45 next?

Worldcoin has continued its market recovery after a $0.2 slip. The altcoin successfully flipped $0.4, clearing losses incurred over the past months.

However, the market volatility followed, and at press time, Worldcoin [WLD] traded at $0.39, up 16.2% on the daily charts. Amid this elevated market volatility, traders have turned bullishly cautious. 

Worldcoin derivatives cautious amid rising liquidations

As the Worldcoin [WLD] market showed intense volatility, liquidation across the market skyrocketed. CoinGlass data showed that liquidation levels surged, with over $5 million liquidated.

At the same time, $3 million in short positions were liquidated while $2 million in longs were liquidated. Rising liquidation levels prompted traders on both sides to cover their positions to reduce liquidation risk. 

As a result, more positions were opened. As such, the altcoin’s  Open Interest rose 21% to $341 million while volume declined 4%. 

A drop in volume while OI rose suggested that, although new positions were opened, market activity reduced significantly. Thus, the derivatives market saw increased demand from traders who rushed to cover their positions. 

Whales remain bullish, continue to accumulate

On the spot side, however, Worldcoin whales have shown greater determination, with aggressive accumulation. 

Spot Average Order Size data from CryptoQuant showed big whale orders over the past week. Whales have aggressively accumulated at $0.35, establishing this price level as a strong wall. 

When whale orders dominate the spot market, it suggests that high-net-worth traders are extremely active in the market. 

In this case, these whales have been aggressively accumulating. Looking at the Spot Netfow, this metric has remained negative for three consecutive days. 

At press time, Netflow sat around -$3.1 million, a significant drop from -$1.3 million recorded the previous day. 

A negative Netflow suggests more assets flowed out of exchanges, a clear sign of spot accumulation. Often, a higher accumulation rate, especially from whales, has preceded better price performance.

Can WLD upside hold this time?

With WLD seeing increased demand from whales and futures traders, the altcoin’s bullish structure has strengthened significantly.

In fact, Upside Volatility has intensified, with the indicator rising to 12, while Downside Volatility has dropped to 8. Such a setup signals that a stronger directional move is developing, with increased price swings.

Usually, such a directional setup has shown potential continuation of momentum but also a higher risk of pullbacks.

At the same time, the altcoin’s Relative Strength Index (RSI) climbed to 67, further validating this trend’s strength. Taken together, these two momentum indicators suggest the upside is currently strong and most likely to continue.

The trend continuation will see Worldcoin hold $0.4 and target the 200-day EMA at $0.45. However, if the altcoin fails to close above $0.4, the market will retrace towards $0.35.

Final Summary

• Worldcoin [WLD] rallied 16%, flipped $0.4 resistance before slightly retracing amid intense market volatility.
• Worldcoin’s bullish streak extended, driven by demand from positions covering as liquidation exceeded $5 million, while spot accumulation by whales continued.