Worldcoin (WLD) is showing strong signs of a potential price surge in the coming days. This follows a breakout from a key technical resistance level and positive signals from on-chain data, suggesting increased investor interest and network activity.
Technical Breakout Hints at Bullish Reversal
WLD has been battling a downtrend for several months, marked by a descending trendline. However, a recent price jump has seen the token break free from this resistance level, a technical indicator often interpreted as a sign of a potential bullish reversal.
If WLD can sustain its momentum and close above $3.03, analysts predict a 30% rally that could see it retest its prior support level at $4.20. This bullish outlook is further bolstered by momentum indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) currently hovering above their neutral positions.
On-Chain Data Reveals Increased Network Activity
Beyond technical factors, on-chain data from Santiment paints a similarly optimistic picture. The Daily Active Addresses metric, which tracks the number of unique addresses interacting with the WLD blockchain, has surged by 73% in the past three days. This spike signifies a significant increase in network activity, potentially indicating growing demand for WLD’s blockchain services.
Exchange Flow Suggests Investor Confidence
Adding fuel to the bullish fire, Santiment’s Exchange Flow data reveals a trend of WLD tokens moving out of exchanges. This suggests that investors are holding onto their WLD, potentially due to increased confidence in the project’s future. The decline in WLD supply on exchanges further reinforces this notion.
Potential Roadblocks: Keeping an Eye on Support Levels
Despite the positive signs, a daily candlestick close below $1.75 could throw a wrench into the bullish narrative. Such a price drop would create a “lower low” on the daily chart, potentially triggering a sell-off and pushing WLD’s price down to its next support level at $1.40, a decline of roughly 20%.
Overall, the technical analysis and on-chain data suggest a potential upswing for Worldcoin. However, continued investor confidence and WLD’s ability to hold above key support levels will be crucial factors in determining the strength and sustainability of any future rally.
