Worldcoin (WLD) has recently caught the attention of the crypto market with a significant 10% rally, recovering impressively after a steep 60% correction. This resurgence has ignited speculation about its future trajectory, with market analysts keenly observing key technical and derivatives indicators to gauge the sustainability of its upward momentum.
Technical Momentum Builds for WLD
WLD's recent surge is underpinned by strong technical signals. The asset successfully broke out of a bullish triangle pattern, a formation often preceding substantial rallies, with projections pointing towards a $2 target. While potential resistance levels at $1.42 and $1.63 might temporarily slow its ascent, key indicators remain largely optimistic. The Average Directional Index (ADX) hovers at a healthy 28, indicating a robust trend despite a slight dip, while the Moving Average Convergence Divergence (MACD) continues its upward climb, signaling strengthening bullish momentum as it aims for the bullish region.
Derivatives Fuel Optimism, Spot Investors Take Profits
Beyond the charts, the derivatives market showcases a strong bullish sentiment. Open Interest (OI) has surged to $18 million, signifying a substantial influx of fresh capital predominantly from long positions, as confirmed by positive OI-Weighted Funding Rates. This widespread positioning for further upside is echoed in the Long/Short Ratio, which shows longs dominating across centralized exchanges. Interestingly, while derivatives traders are accumulating, spot investors have shown signs of profit-taking, offloading $306,000 worth of WLD on September 26th. However, this is largely viewed as temporary profit-taking rather than a broader bearish reversal, especially given that Spot Exchange Netflow turned positive for the first time in nearly three weeks. Should spot buyers rejoin the rally, it would further reinforce the path towards the $2 target.
