Worldcoin (WLD) Whale Volumes Spike, Suggesting a Trend Reversal May Be Imminent

Worldcoin [WLD] posted slight gains earlier this week as Bitcoin [BTC] and the broader cryptocurrency market rallied. However, at press time, WLD had shed some of these gains after a slight 0.35% drop to trade at $1.98.

Worldcoin (WLD) price action witnessed a turbulent week with initial gains followed by a slight decline. At press time, WLD was valued at $1.98 after a 0.35% drop. However, a closer examination of on-chain metrics suggested a potential trend reversal.

Whale activity around Worldcoin surged, as evident from IntoTheBlock data. Volumes for large transactions, defined as those exceeding $100,000 in WLD tokens, spiked from 9.98 million to 77.78 million in just 24 hours.

This activity could be crucial, considering that whales collectively held 84% of Worldcoin’s supply. If the token were to rally, it would likely be driven by buying activity from this cohort.

One-day price chart for Worldcoin (WLD)

Relative Strength Index (RSI) indicator showed a neutral level of 50, indicating a balance between sellers and buyers. However, the RSI line was positioned above the signal line, suggesting an increase in bullish momentum.

Meanwhile, the Chaikin Money Flow (CMF) was valued at 0.05, suggesting buying activity. Nonetheless, further buying pressure was needed to strengthen the uptrend.

If this trend were to continue, $2.35 would emerge as the immediate resistance level, followed by a liquidity trap at $2.65. The lack of liquidity at this price could act as a magnet, potentially pushing prices higher.

On the other hand, if the bullish trend faltered due to insufficient buying pressure, WLD could experience a drop towards the support level at $1.58.

Worldcoin’s Network Value to Transaction (NVT) ratio, an indicator of an asset’s price relative to on-chain activity, suggested that Worldcoin might be undervalued.

At press time, the NVT ratio, available on IntoTheBlock, was at its lowest in three weeks. This metric indicated high on-chain activity around Worldcoin, which was bullish for WLD.

If the network were to experience growth that was not reflected in the price, it could indicate that WLD was undervalued, paving the way for upside potential.

Interestingly, despite these indicators suggesting that WLD might be poised for a rally, derivative traders seemed to be betting against the altcoin.

Data from Coinglass showed that the long/short ratio had remained below 1 for three consecutive days. This indicated that short sellers outnumbered traders taking long positions, reflecting a bearish market sentiment.