Key Highlights
Worldcoin has surged in value by 6.04%, hitting a monthly peak of $1.28.
The cryptocurrency is testing a critical resistance level. For the
positive trend to continue, buyers need to push past the 200-day
Exponential Moving Average (EMA).
After being turned away at $1.13 and falling back to $0.99,
Worldcoin [WLD]
has shown significant upward strength.
Over the past week, the altcoin has been moving within a rising channel,
reaching its highest point this month at $1.28.
Currently, Worldcoin is valued at $1.245, a 6.04% increase in the last 24
hours. During this time, the cryptocurrency’s trading volume has seen a
substantial 92.91% increase, reaching $379 million, showing increased
activity.
Worldcoin’s Activity Shows Signs of Recovery
As reported, Worldcoin has rebounded impressively from its recent dip, fueled
by a growing user base.
Data from Santiment indicates that Worldcoin’s Price DAA Divergence has
remained positive for the past week. A positive DAA suggests that the asset
is not only gaining value but also attracting more active users.
Source: Santiment
Consequently, the count of active participants has risen from 500 to 826,
indicating an addition of 326 new active individuals. This implies that
the recent price increase is genuine and sustainable, rather than simply
speculative.
Source: Coinalyze
Moreover, these users are entering the market to increase their holdings.
According to Coinalyze, Worldcoin has seen $40 million in buy volume over
the past 48 hours, reflecting increased accumulation.
Investors Show Increased Interest in Taking Profits
As anticipated, the price increase has led to greater interest among
investors in cashing out. CoinGlass data shows that Spot Netflow has turned
positive for the first time in a month.
Source: CoinGlass
As of this update, Spot Netflow is $1.20 million, indicating a higher inflow
into exchanges. Consequently, Worldcoin’s scarcity has diminished as
supply increases.
According to Santiment, WLD’s stock-to-flow ratio has decreased to 599.
A declining SFR suggests an increase in available supply for immediate sale.
Source: Santiment
Historically, such market dynamics have preceded price reductions, placing
downward pressure on values.
Can WLD Overcome Challenges to Reach $1.7?
According to analysts, Worldcoin has seen consistent gains due to
recovering demand and increased network activity.
Consequently, the altcoin has begun testing its Long-Term Moving Average
for the first time in two months at the time of this report.
Source: TradingView
At the time of writing, the 200-day EMA was around $1.28, with WLD trading
slightly below it at around $1.24. Having faced rejection at this point
previously, WLD must overcome the 200-day EMA to continue its upward
trajectory.
Therefore, a solid close above this long-term MA would potentially push the
altcoin towards the $1.7 resistance level. However, if Worldcoin is unable
to sustain its upward momentum, it will likely retrace and fall back towards
$1.09.