Worldcoin tests key resistance at $1.28: Is $1.7 next for WLD?
Worldcoin surges 6% to hit a monthly high of $1.28 amid growing on-chain activity.
Key Takeaways
Worldcoin rallied 6.04%, reaching a monthly high of $1.28. The altcoin tested a key resistance, and bulls need to flip the 200EMA for a continued uptrend.
Since facing rejection at $1.13 and retracing to $0.99, Worldcoin [WLD] has experienced strong upward momentum.
In fact, over the past week, the altcoin has traded within an ascending channel, reaching a monthly high of $1.28.
As of this writing, Worldcoin was trading at $1.245, marking a 6.04% increase over the past 24 hours. Over the same period, the altcoin’s trading volume jumped 92.91% to $379 million, reflecting growing on-chain activity.
Worldcoin’s on-chain activity recovers
According to AMBCrypto, Worldcoin bounced back strongly after the recent correction, driven by the growing number of users.
According to Santiment, Worldcoin’s Price DAA Divergence has held within positive territory for the past week. A positive DAA indicates that not only is the asset gaining value, but also, more users are actively using it.
As a result, the number of active users increased from 500 to 826, representing an addition of 326 new active users. This suggests that the recent price uptick is organic and sustainable, not just speculative.
Not only that, but these users entered the market to accumulate. According to Coinalyze, Worldcoin saw $40 million in Buy Volume over the past 48 hours, reflecting the growing accumulation of addresses.
Profit takers’ appetite soars
As expected, the price jump led to an increased appetite among investors to cash out. According to CoinGlass, Spot Netflow turned positive for the first time in 30 days.
As of this writing, Spot Netflow was $1.20 million, reflecting higher exchange Inflow. As a result, Worldcoin’s scarcity has dipped significantly amid rising supply.
According to Santiment, WLD’s stock-to-flow ratio declined to 599 as of this writing. When SFR declines, it suggests a surge in supply available for immediate selling.
Historically, such market dynamics have preceded lower prices, exerting downward pressure on prices.
Can WLD defy the odds to hit $1.7?
According to AMBCrypto’s analysis, Worldcoin recorded sustained gains amid recovering demand and rising network usage.
For that reason, the altcoin started testing the Long Term Moving Average for the first time in two months at press time.
As of this writing, 200EMA was around $1.28, with WLD sitting slightly below it, around $1.24. Having faced rejection here over the past day, WLD must flip 200EMA to maintain the upward movement.
Therefore, a decisive close above the long-term MA will set the altcoin hiking towards $1.7 resistance. However, if Worldcoin fails to sustain this upward move, the altcoin will likely retrace and decline to $1.09.
