- The asset has recently recovered from a key demand zone, a move that could fuel its upward trajectory.
- Despite the prevailing bullish sentiment, one indicator suggested that this rally could encounter some resistance.
World currency [WLD] has struggled under bearish pressure, falling 16.01% over the past week to trade at $1.99 at the time of writing. However, market conditions showed signs of recovery and WLD looked set to benefit. Entering a bullish zone, the asset has already risen 0.17%, according to CoinMarketCap.
WLD takes first bullish step in new rally attempt
WLD has taken its first bullish step toward a potential rally after entering a demand zone, resulting in a green candle and another currently forming.
This demand zone, between $1,880 and $1,720, could push WLD toward a short-term target of $2,479 if enough buying pressure builds, with a longer-term target of $3,262.
However, if Worldcoin fails to hold this zone, the asset could return to the $1 range, possibly testing support at $1,693 and $1,532.
According to AMBCrypto’s analysis, bullish sentiment appears to dominate, with traders supporting an upward move.
Source: trading view
WLD’s rally remains a matter of time
Multiple on-chain metrics indicated that WLD was headed for significant upside. Currently, both Exchange Netflow and Chaikin Money Flow are signaling promising trends.
Exchange Netflow according to Mint glass been predominantly negative. In the last 24 hours and the last seven days, WLD has seen massive withdrawals from exchanges, totaling $602.62 thousand and $17.88 million respectively.
A negative Exchange Netflow suggested that there were greater outflows of Worldcoin from the exchanges than inflows, indicating greater trader confidence. This dynamic could lead to a price increase as fewer WLD assets become available on exchanges.
Source: Coinglass
Similarly, the Chaikin Money Flow, which measures liquidity inflows, showed that while there were significant withdrawals, there was also active buying in WLD.
Source: trading view
If this trend continues, demand for WLD is likely to increase. Especially as supply dwindles and traders try to take advantage of tighter availability, it remains only a matter of time before a big surge occurs.
Small delay in the rally
WLD’s rally may experience a slight delay. Despite the positive momentum and increasing interest in the assets, liquidation data has been unfavorable for short positions.
Realistic or not, here is the WLD market cap in terms of BTC
At the time of writing, long liquidations totaled $496.77k, compared to just $139.11k for shorts. This indicated that while the market remained bullish, current losses in long positions could delay a significant upward move.