Worldcoin [WLD] staged a strong comeback, rebounding from a $0.30 decline as the market signaled a broader recovery.
WLD climbed 20% to a local high of $0.42 after defending the $0.40 level, before slightly retracing. At press time, it traded at $0.40, still up 14.42% on the daily chart.
Meanwhile, the altcoin market cap reclaimed $1 billion, signaling fresh capital inflows. With this rally, WLD effectively erased the losses from the past three days of weakness.
Worldcoin shows bullish momentum
WLD exhibited bullish momentum as tensions and fears in the futures market cooled and traders’ risk appetite recovered.
A break from the recent trend, investors turned bullish and started taking long positions. According to CoinGlass data, Open Interest (OI) rose 16.3% to $130 million, at press time, indicating increased capital flows into futures positions.
Source: CoinGlass
In fact, Worldcoin recorded $135.55 million in Futures Inflows compared to $133.25 million in Outflows, resulting in $2.29 million in net flow.
Interestingly, most of this capital flowed into long positions, as evidenced by the Long-Short Ratio. This metric increased from 0.7 to 1.2, with investors on OKX and Binance accounting for the majority.
Source: CoinGlass
A ratio exceeding 1 indicates that most participants were bullish and had placed aggressive bets on further gains.
Pressure on prices eases
In addition to a future recovery in risk appetite, the spot market recorded a significant increase in demand.
The BSVP ratio indicates that sellers are exhausted in the market. As such, sell pressure turned negative, while buy pressure rose to 19 as of writing, a significant jump from the previous day.
Source: TradingView
The shift in dynamics indicated increased buyer activity as they sought to absorb market pressure.
Although buyers have attempted to exert pressure, net market pressure remains bearish, suggesting they have not yet fully dominated the market. As such, the market needs a sustained period of higher buying pressure for a momentum shift.
Furthermore, exchange activities also echoed this recovering demand. As such, more than $28.29 million in WLD flowed out of exchanges over the past 24 hours.
Source: CoinGlass
At the same time, only $27 million flowed into the market, indicating a significant jump in market demand.
With demand for Worldcoin recovering across the market, these could create new upside pressure on the price. Often, increased upside pressure precedes higher prices for the given asset.
Can WLD’s upside momentum sustain?
Worldcoin rebounded from the recent slip as demand recovered across all market participants amid broader market reactivation.
As a result, the altcoin’s Relative Strength Index made a bullish crossover, hiking from 32 to 42 at press time. Equally, WLD crossed its short-term moving average (9MA) before a slight pullback.
Source: TradingView
These two bullish moves indicated stronger market demand, as bulls attempted to regain control of the market. Although RSI remains within the bearish zone, these moves indicate a recovery in buying activity, a signal for sustained upside.
If demand holds, Worldcoin will cross its 9- and 21-day MAs at $0.45, setting the stage for a move towards $0.55, where the upside previously collapsed.
However, if this market attempt fails and bears retest the market, WLD will seek support at approximately $0.34.
Final Thoughts
- WLD rebounded from a $0.30 drop, successfully defended $0.4, and touched a local high of $0.42.
- Worldcoin experienced renewed risk appetite and eased price pressures, accelerating upside momentum.
Source: https://ambcrypto.com/worldcoin-reclaims-0-40-whats-next-after-wlds-14-surge/
